Jarden Company has credit sales of $2,900,000 for year 2017. On December 31, 2017, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $19,117. Jarden prepares a schedule of its December 31, 2017, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here: December 31, 2017 Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible
$580,000 Not yet due 1.05%
232,000 1 to 30 days past due 1.80
46,400 31 to 60 days past due 6.30
23,200 61 to 90 days past due 31.75
4,640 Over 90 days past due 66.00
Required:
Estimate the required balance of the Allowance for Doubtful Accounts at December 31, 2017, using the aging of accounts receivable method.
Accounts Receivable * Percent Uncollectible (%) = Estimated Uncollectible
Not due * =
1 to 30 * =
31 to 60 * =
61 to 90 * =
Over 90 * =
Estimated balance of allowance for uncollectible =