What is estimated amount of the firm''s accounts receivable


Storm and Strife LLP, an accrual basis law firm, showed an Accounts Receivable balance of $520,000 on its books at the end of 20x2. The firm uses the Accounts Receivable Aging method in determining its Allowance for Doubtful Accounts and Bad Debt Expense. An aging schedule of the Accounts Receivable showed the following:
Estimated %
Balance Age of Receivable Uncollectible
$ 180,000 under 30 days 3.0 %
110,000 30-60 days 5.0 %
100,000 61-120 days 10.0 %
50,000 121-180 days 20.0%
50,000 180-240 days 25.0 %
30,000 over 240 days 30.0 %
520,000

What is the estimated amount of the firm's Accounts Receivable that will prove to be uncollectible?

 

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Accounting Basics: What is estimated amount of the firm''s accounts receivable
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