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3 years ago

Estimating Allowance for Doubtful Accounts

Business

1 answer:

sp2606 [1]3 years ago

5 0

Answer:

Allowance for doubtful accounts $ 106106 using the aging method

Explanation:

Evers Industries

Estimate of Allowance for Doubtful Accounts

Balance Not Past Past Due (days)

Due (1-30) (31-60) (61-90) (Over 90)

Total

Receivables 1,124,500 607,400 233,000 121600 96500 66000

Percentage

Uncollectible 1% 3% 12% 30% 75%

Allowance for 6074 6990 14592 28950 49500

doubtful accounts 106106

We multiply each percent with the amount given and then add them all to get the total which is $106106 based on aging method.

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Crane Sales Company uses the retail inventory method to value its merchandise inventory. The following information is available

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Answer:

C. $222,500 ÷ $313,500

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Calculation for cost to retail ratio

COST

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