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  • Blanka 8

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    Bammie Skrtt
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    To compute the bad debts expense for 1992, multiply the receivable balances in the 31-120 days past due categories by the uncollectible percentages listed. This results in an allowance of $59,500, which is the bad debts expense for 1992. The key steps are to identify the past due categories, find the corresponding receivable balances and uncollectible percentages, and multiply them to calculate the required allowance.

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    To compute the bad debts expense for 1992, multiply the receivable balances in the 31-120 days past due categories by the uncollectible percentages listed. This results in an allowance of $59,500, which is the bad debts expense for 1992. The key steps are to identify the past due categories, find the corresponding receivable balances and uncollectible percentages, and multiply them to calculate the required allowance.

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    3 views1 page

    Blanka 8

    Uploaded by

    Bammie Skrtt
    To compute the bad debts expense for 1992, multiply the receivable balances in the 31-120 days past due categories by the uncollectible percentages listed. This results in an allowance of $59,500, which is the bad debts expense for 1992. The key steps are to identify the past due categories, find the corresponding receivable balances and uncollectible percentages, and multiply them to calculate the required allowance.

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    of 1

    Flowering Garden Co.

    Requirements: Compute for the bad debts expense in 1992


    Be sure to solve the problem and find the correct answer
    One hundred thousand multiply by 2 is equal to two hundred thousand

    % Required
    Receivable
    Days past due Uncollectible allowance (a) x
    balances (a)
    (b) (b)
    Not due (cash discounts available) – 0 to 15
    350,000 None
    days of age
    Not due ( cash discounts forfeited) – 16-30
    210,000 None
    days of age
    1-30 days of past due 175,000 3% 5,250
    31-60 days past due 140,000 10% 14,000
    61-90 days past due 105,000 15% 15,750
    91-120 days past due 70,000 35% 24,500
    Totals 1,050,000 59,500

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