Rand Construction Inc uses the aging method to estimate bad debts.During 2014, before recording its adjusting entries, the firm wrote off $2,000 of accounts receivable, leaving a $400 credit in its allowance for doubtful accounts.After the write-offs, based on historical experience and a careful review of the company's receivables, the company's accountant prepared the following aging schedule: $$\begin{array} { l r r }
\text { Age } & \text { Amount } & \text { Estimated uncollectible } \
\hline \text { Not past due } & \$ 40,000 & 2 \% \
1 - 30 \text { days overdue } & 18,000 & 6 \% \
\text { Over 30 days } & 4,000 & 20 \%
\end{array}$$ Required:

Question

Rand Construction Inc uses the aging method to estimate bad debts.During 2014, before recording its adjusting entries, the firm wrote off $2,000 of accounts receivable, leaving a $400 credit in its allowance for doubtful accounts.After the write-offs, based on historical experience and a careful review of the company's receivables, the company's accountant prepared the following aging schedule: $$\begin{array} { l r r } 
\text { Age } & \text { Amount } & \text { Estimated uncollectible } \
\hline \text { Not past due } & \$ 40,000 & 2 \% \
1 - 30 \text { days overdue } & 18,000 & 6 \% \
\text { Over 30 days } & 4,000 & 20 \%
\end{array}$$ Required:

Quizplus · Accepted Answer

The Answer of Rand Construction Inc uses the aging method to estimate bad debts.During 2014, before recording its adjusting entries, the firm wrote off $2,000 of accounts receivable, leaving a $400 credit in its allowance for doubtful accounts.After the write-offs, based on historical experience and a careful review of the company's receivables, the company's accountant prepared the following aging schedule: $$\begin{array} { l r r } 
\text { Age } & \text { Amount } & \text { Estimated uncollectible } \
\hline \text { Not past due } & \$ 40,000 & 2 \% \
1 - 30 \text { days overdue } & 18,000 & 6 \% \
\text { Over 30 days } & 4,000 & 20 \%
\end{array}$$ Required:

Rand Construction Inc Uses the Aging Method to Estimate Bad