Rintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company’s fiscal year-end. The 2010 balance sheet disclosed the following:
Current assets:
Receivables, net of allowance for uncollectible accounts of $28,000 $500,000
During 2011, credit sales were $1,890,000, cash collections from customers $1,992,060, and $35,500 in accounts receivable were written off. In addition, $4,500 was collected from a customer whose account was written off in 2010. An aging of accounts receivable at December 31, 2011, reveals the following:
[Age Group,] [Percentage of receivable in group,] [Percent Uncollectable ]
[0–60 days] [,(60 %) ],[(4 %) ]
[61–90 days ][,(18%) ] ,[(15%) ]
[91–120 days ,][(10%) ], [(25%) ]
[ Over 120 days ,][(12%) ] , [(40%)]
I have bee playing with different numbers for a while and can't seem to find any answer that matches.
CAN SOMEONE HELP ME CALCULATE THIS???
THANKS FOR YOUR HELP!!
Current assets:
Receivables, net of allowance for uncollectible accounts of $28,000 $500,000
During 2011, credit sales were $1,890,000, cash collections from customers $1,992,060, and $35,500 in accounts receivable were written off. In addition, $4,500 was collected from a customer whose account was written off in 2010. An aging of accounts receivable at December 31, 2011, reveals the following:
[Age Group,] [Percentage of receivable in group,] [Percent Uncollectable ]
[0–60 days] [,(60 %) ],[(4 %) ]
[61–90 days ][,(18%) ] ,[(15%) ]
[91–120 days ,][(10%) ], [(25%) ]
[ Over 120 days ,][(12%) ] , [(40%)]
I have bee playing with different numbers for a while and can't seem to find any answer that matches.
CAN SOMEONE HELP ME CALCULATE THIS???
THANKS FOR YOUR HELP!!