Cicero Company s accounts receivable reveal the following balances:
|
Age of Accounts |
Receivable Balance |
|
Current |
600,000 |
|
1 30 days past due |
$320,000 |
|
31 60 days past due |
$80,000 |
|
61 90 days past due |
$50,000 |
|
91 120 days past due |
9,000 |
The credit balance in Allowance for Bad Debts is now $26,000. After a thorough analysis of its collection history, the company estimates that the following percentages of receivables willeventually prove uncollectible:
|
Current. |
0.40% |
|
1 30 days past due . |
3 |
|
31 60 days past due. |
12 |
|
61 90 days past due. |
60 |
|
91 120 days past due. |
90 |