Perry Materials Supply Uses the Aging Method to Account for Uncollectible

question 125

Essay

Perry Materials Supply uses the aging method to account for uncollectible accounts. At the end of the year, the balance in Accounts receivable was $146,000 and Perry prepared the following aging schedule.
Based on past history, Perry uses 2% for current receivables (1-30 days), 10% for 31-60 days, 20% for 61-90 days, and 40% for over 90 days. Please complete the schedule and calculate the estimated amount of Uncollectible accounts.

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Definitions:

Treaty of Paris

A historic agreement signed to end a conflict or war, notable instances include the 1783 treaty ending the American Revolutionary War and the 1814-1815 treaties following the Napoleonic Wars.

Whigs

A political faction and then a political party in the parliaments of England, Scotland, Great Britain, Ireland, and the United Kingdom, notably supporting the supremacy of Parliament over the monarchy.

Treaty of Paris (1763)

This treaty ended the French and Indian War/Seven Years' War between Great Britain and France, resulting in France ceding Canada and land east of the Mississippi River to Britain.