Question - An analysis of the accounts of Laraniva Pty Ltd at 30 June 2014 shows these amounts outstanding on accounts receivable:
|
|
Number of Days Past Due
|
|
Customer
|
Not Due
|
1-30
|
31-60
|
31-90
|
Over 90
|
|
Smith
|
|
10000
|
12000
|
|
|
|
Zhang
|
70000
|
|
|
|
|
|
Brown
|
150000
|
5000
|
|
33000
|
|
|
Singh
|
|
|
|
|
37000
|
|
Jones
|
92000
|
14000
|
12000
|
|
|
At June 2014 there is a $1600 debit balance in Allowance for Doubtful Debts before adjustment. Credit terms are 3/7, n/30. The entity uses the ageing of accounts receivable basis for estimating uncollectable accounts.
|
Age of accounts
|
Estimated percentage % uncollectable
|
|
Not Due
|
2
|
|
1-30
|
5
|
|
31-60
|
12
|
|
61-90
|
18
|
|
Over 90
|
40
|
Required -
Determine the estimated uncollectable for each period, i.e. not due, 1-30 days, 31-60 days, 61-90 days, over 90 days and total estimated uncollectables.