Accounting for uncollectible accounts using the allowance method and reporting receivables on the balance sheet At December 31, 2012, the Accounts receivable balance of GPS Technology is $190,000. The Allowance for doubtful accounts has an $8,600 credit balance. GPS Technology prepares the following aging schedule for its accounts receivable:
|
|
|
Age of Accounts |
|
|
|
1–30 |
31–60 61–90 |
Over 90 |
||
|
Accounts receivable |
Days |
Days Days |
Days |
|
|
$190,000 |
$80,000 |
$60,000 |
$40,000 |
$10,000 |
|
Estimated percent uncollectible |
0.4 % |
5.0 % |
6.0 % |
50.0 % |
Requirements
1.Z
2. Show how GPS Technology will report its net Accounts receivable on its December 31, 2012 balance sheet.