| | | 20X2 | 20X1 |
| Sales | | $23,987,000 | $8,423,000 |
| Accounts Receivable, 12/31 | | 12,444,000 | 1,056,000 |
| Allowance for Uncollectible Accounts, 12/31 | | ? | 23,000 |
| a. Estimate the amount of Uncollectible Accounts as of December 31, 20X2. |
| 20X2 |
| Age of Receivable | Amount | Percentage of Accounts Expected to Be Collected | Uncollectible percent | Amount |
| | | | | Uncollectible |
| Under 31 days | $4,321,000 | 99% | 1% | $43,210 |
| 31-60 days | 4,890,000 | 90% | 10% | $489,000 | | | = given in the instructions |
| 61-90 days | 1,067,000 | 80% | 20% | $213,400 | | | = given in the instructions |
| Over 90 days | 2,166,000 | 60% | 40% | $866,400 | | | = calculated using information from the instructions |
| | $12,444,000 | | Total Amount Uncollectible | $1,612,010 | | | = calculated using information from the instructions |
| | | | | | | | = calculated using information from the instructions |
| b. What is the company’s Uncollectible Accounts expense for 20X2? |
| REMEMBER TO NET THE $23,000 WRITTEN OFF IN 20X1 AGAINST THE AMOUNT OF UNCOLLECTIBLE FOR 20X2 |
| c. Compute the net realizable value of Accounts Receivable at the end of 20X1 and 20X2. |
| | 20X2 | 20X1 |
| Accounts receivable | $12,444,000 | 1,056,000 |
| Allowance | 1,612,010 | 23,000 |
| Net Realizable value | 10,831,990 | 1,033,000 |
| d. Compute the net realizable value at the end of 20X1 and 20X2 as a percentage of respective year-end receivables balances. |
| | 20X2 | 20X1 |
| Accounts receivable | $12,444,000 | 1,056,000 |
| Net Realizable value | 10,831,990 | 1,033,000 |
| Net Realizable value as | 87% | YOU MUST DIVIDE "Net Realizable Value" by "Accounts Receivable" IN ORDER TO CALCULATE THE % |
| a % of receivables |
fnzsmom95
week_2_-_assignment_question_no_7-1.xlsx
