net zero products, a wholesaler of sustainable raw materials, prepares the following aging of receivables…

net zero products, a wholesaler of sustainable raw materials, prepares the following aging of receivables analysis. complete this question by entering your answers in the tabs below. estimate the balance of the allowance for doubtful accounts using the aging of accounts receivable method.

net zero products, a wholesaler of sustainable raw materials, prepares the following aging of receivables analysis. complete this question by entering your answers in the tabs below. estimate the balance of the allowance for doubtful accounts using the aging of accounts receivable method.

Answer

Explanation:

Step1: Calculate not - due uncollectible

Multiply not - due accounts receivable by its uncollectible rate. $95000\times 1%=950$

Step2: Calculate 1 - 30 days uncollectible

Multiply 1 - 30 days accounts receivable by its uncollectible rate. $33000\times 2% = 660$

Step3: Calculate 31 - 60 days uncollectible

Multiply 31 - 60 days accounts receivable by its uncollectible rate. $14500\times 4%=580$

Step4: Calculate 61 - 90 days uncollectible

Multiply 61 - 90 days accounts receivable by its uncollectible rate. $11500\times 6% = 690$

Step5: Calculate over 90 days uncollectible

Multiply over 90 days accounts receivable by its uncollectible rate. $13500\times 10%=1350$

Step6: Sum up uncollectible amounts

Add all the estimated uncollectible amounts. $950 + 660+580+690+1350=4230$

Answer:

$4230$