Maurice Tutor
$15/per page/Negotiable
The following aging of accounts receivable is for Harry Company at the end of its first year of business:
|
Aging of Accounts Receivable 31-Dec-03 |
|||||
| Â |
Overall |
Less Than 30 Days |
31 to 60 Days |
61 to 90 Days |
Over 90 Days |
|
Ken Nelson |
10,000 |
$8,000 |
 |
1,000 |
1,000 |
|
Elaine Anderson |
40,000 |
31,000 |
$4,000 |
 |
$5,000 |
|
Bryan Crist |
12,000 |
3,000 |
4,000 |
$2,000 |
$3,000.00 |
|
Renee Warner |
60,000 |
50,000 |
10,000 |
 |  |
|
Nelson Hsia |
16,000 |
10,000 |
6,000 |
 |  |
|
Stella Valerio |
25,000 |
20,000 |
 |
$5,000.00 |
 |
|
Totals |
$163,000 |
$122,000 |
24,000 |
$8,000 |
$9,000 |
Harry Company has collected the following bad debt information from a consultant familiar with Harry s industry:
|
Age of Account |
Percentage Ultimately Uncollectible |
|
Less than 30 days |
2% |
|
31 60 days |
10 |
|
61 90 days |
30 |
|
Over 90 days |
75 |
1. Compute the appropriate Allowance for Bad Debts as of December 31, 2003.
2. Make the journal entry required to record this allowance. Remember that, since this is Harry s first year of operations, the allowance account at the beginning of the year was $0.
3. What is Harry s net accounts receivable balance as of December 31, 2003?