Question

Pearl E. White Orthodontist specializes in correcting misaligned teeth. During 2021, Pearl provides services on account of $580,000. Or this amount, $70,000 remains receivable at the end of the year. An aging schedule as of December 31 2021, is provided below. Amount Receivable $30,000 15,000 10,000 Estimated Percent Uncollectible 5% 10% Age Group Not yet due 0-90 days past due 91-180 days past due More than 180 days past due Total 30% 80% 15, eee $70,000 Required: 1. Calculate the allowance for uncollectible accounts Estimated

Answer 1

Answer Requirement 1

Age Group	Estimated Amount Uncollectible
Not yet due	$                      1,500
0-90 days past due	$                      1,500
91-180 days past due	$                      3,000
more than 180 days past due	$                    12,000
Total	$                    18,000

Calculated as

Age Group	Amount Receivable		Estimated percent uncollectible		Estimated amount uncollectible
Not yet due	30000	x	5%	=	$                      1,500
0-90 days past due	15000	x	10%	=	$                      1,500
91-180 days past due	10000	x	30%	=	$                      3,000
more than 180 days past due	15000	x	80%	=	$                    12,000
Total					$                    18,000