EX 9-9 Estimating allowance for doubtful accounts

Quigley Industries has a past history of uncollectible accounts, as shown below. Estimate
the allowance for doubtful accounts, based on the aging of receivables schedule you
completed in Exercise 9-8.
Age Class                                      Percent 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

Answer:
Days Past Due       Not Past    Over     Balance Due 1–30 31–60 61–90 90   Total receivables 900,000 523,000 190,000 97,000 53,000 37,000 Percentage uncollectible  1% 4% 15% 35% 60% Allowance for Doubtful Accounts   68,130 5,230 7,600 14,550 18,550 22,200 

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