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Question 1

The accounts receivable clerk for Maria Enterprises prepared the following partially completed aging of receivables schedule as of the end of business on November 30:

Days Past Due
CustomerBalanceNot Past Due1-3031-6061-90Over 90
Abbott Inc.$2,500$2,500    
Account Co.$4,600 $4,600   
.....................
ZZZ Corp.$4,800  $4800  
Subtotals$826,700$501,200$175,500$80,900$44,300$24,800

The following accounts were unintentionally omitted from the aging schedule and not included in the subtotals above.

CustomerBalanceDue DateDays Past Due
Buffalo-B Inc.$12,800July 4
Doodle-Do Co.$8,900Sept. 28
Le'Veon Corp.$16,800Oct. 15
Vinny Industries$10,400Nov. 4
We-Win Company$22,100Dec. 28 Not Past Due

Determine the number of days past due for each account and complete the aging of receivables by adding the omitted accounts.

Days Past Due
CustomerBalanceNot Past Due1-3031-6061-90Over 90
Abbott Inc. $2,500 $2,500
Account Co. $4,600 $4,600
... ... ... ... ... ... ...
ZZZ Corp. $4,800 $4800
Subtotals $826,700 $501,200 $175,500 $80,900 $44,300 $24,800
Buffalo-B Inc.
Doodle-Do Co.
Le'Veon Corp.
Vinny Industries
We-Win Company
TOTALS


Question 2

Maria Enterprises has a past history of uncollectible accounts.

Estimate the allowance for doubtful accounts based on the aging of receivables below.

Age Class % Uncollectible
Not past due 1%
1 – 30 days past due 4%
31 – 60 days past due 15%
61 – 90 days past due 35%
Over 90 days past due  60%

Days Past Due
CustomerBalanceNot Past Due1-3031-6061-90Over 90
Total receivables
Percent Uncollectible
Allowance for Doubtful Accounts


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