1 / 19

Aging Accounts Receivable

Aging Accounts Receivable. Georgia CTAE Resource Network Instructional Resources Office Written by: Dr. Marilynn K. Skinner May 2009. To Receive Credit for this problem:.

oneida
Télécharger la présentation

Aging Accounts Receivable

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Aging Accounts Receivable Georgia CTAE Resource Network Instructional Resources Office Written by: Dr. Marilynn K. Skinner May 2009

  2. To Receive Credit for this problem: Create a spreadsheet in Excel that will calculate the amounts for you. You may work with a partner, but you must turn in a printed copy of the spreadsheet and tell me whose folder it is saved under.

  3. Why Age Accounts Receivable? • The longer it takes to collect an account the higher the chances that it will become uncollectible. • Companies can look back at past collections and predict a percentage of accounts that might not be paid.

  4. Example

  5. Percentages Not Yet Due 2% 1-30 Days Past Due 4% 31-60 Days Past Due 25% 61-90 days Past Due 35% Over 90 Days Past Due 55%

  6. Step 1 get total for each time period.

  7. Calculate Not Yet Due (2%) 562 X 2 % = 11.24

  8. Step 1 get total for each time period.

  9. Calculate Not Yet Due (2%) 562 X 2 % = 11.24 Past Due : 1-30 Days (4%) 3,500 X 4%= 140.00

  10. Step 1 get total for each time period.

  11. Calculate Not Yet Due (2%) 562 X 2 % = 11.24 Past Due : 1-30 Days (4%) 3,500 X 4%= 140.00 31-60 Days (25%) 1,902 X 25%= 475.50

  12. Step 1 get total for each time period.

  13. Calculate Not Yet Due (2%) 562 X 2 % = 11.24 Past Due : 1-30 Days (4%) 3,500 X 4%= 140.00 31-60 Days (25%) 1,902 X 25%= 475.50 61-90 Days (35%) 120 X 35%= 42.00

  14. Step 1 get total for each time period.

  15. Calculate Not Yet Due (2%) 562 X 2 % = 11.24 Past Due : 1-30 Days (4%) 3,500 X 4%= 140.00 31-60 Days (25%) 1,902 X 25%= 475.50 61-90 Days (35%) 120 X 35%= 42.00 90+ Days 1,071 X 55%= 589.05

  16. Calculate Not Yet Due (2%) 562 X 2 % = 11.24 Past Due : 1-30 Days (4%) 3,500 X 4%= 140.00 31-60 Days (25%) 1,902 X 25%= 475.50 61-90 Days (35%) 120 X 35%= 42.00 90+ Days 1,071 X 55%= 589.05 Total 1,131.79

  17. Allowance for Doubtful Accounts 354.00 ? 1131.79 Calculating Entry

  18. Allowance for Doubtful Accounts 354.00 ? 1131.79 1131.79 – 354.00 = 777.79 Calculating Entry

  19. Entry: Bad Debt Expense 777.79 Allowance for Doubtful Accounts 777.79

More Related