Question -
Proehl Corporation has accounts receivable of $101,860 at March 31, 2015. An analysis of the accounts shows these amounts:
|
|
Balance, March 31
|
|
|
2015
|
2014
|
|
March (current)
|
$69,100
|
$75,420
|
|
February (1 - 30 days past due)
|
14,900
|
8,950
|
|
December and January (31 - 90 days past due)
|
10,860
|
2,280
|
|
November and October (over 90 days past due)
|
7,000
|
1,330
|
|
|
$101,860
|
$87,980
|
Credit terms are 2/10, n/30. At March 31, 2014, there is a $2,090 credit balance in Allowance for Doubtful Accounts prior to estimating uncollectible accounts. The company's estimates of bad debts are as shown below.
|
Age of Accounts
|
Estimated Percentage Uncollectible
|
|
Current
|
2%
|
|
1-30 days past due
|
6%
|
|
31-90 days past due
|
30%
|
|
Over 90 days past due
|
50%
|
Prepare an aging schedule to determine the total estimated uncollectibles at March 31, 2015.