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As Perry Materials Supply Was Preparing for the Year-End Close,their

Question 49

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As Perry Materials Supply was preparing for the year-end close,their balances were as follows:  As Perry Materials Supply was preparing for the year-end close,their balances were as follows:   Perry Materials uses the aging method and has completed the following analysis of the accounts receivable:  \begin{array}{|l|r|r|r|r|r|} \hline\text { Customer } & 1-30 \text { Days } & 31-60 \text { Days } & 61-90 \text { Days } & \begin{array}{c} \text { Over } 90 \\ \text { Days } \end{array} & \text { Total Balance }\\ \hline \text { Johnson } & \$ 4,600 & \$ 3,200 & & & \$ 7,800 \\ \hline \text { Hot Pots, Inc. } & & & 800 & 1,000 & 1,800 \\ \hline \text { Potter } & 40,000 & 550 & & & 40,550 \\ \hline \text { Harrison } & & 3,600 & 900 & & 4,500 \\ \hline \text { Marz } & & & 2,000 & 50 & 2,050 \\ \hline \text { Younger } & 65,000 & & & & 65,000 \\ \hline \text { Merry Maids } & 5,900 & & & & 5,900 \\ \hline \text { Acher } & 12,000 & 6,400 & & & 18,400 \\ \hline \text { Totals } & \$ 127,500 & \$ 13,750 & \$ 3,700 & \$ 1,050 & \$ 146,000 \\ \hline \begin{array}{l} \text { Uncollectible percentage } \end{array} & 2 \% & 10 \% & 20 \% & 40 \% & \\ \hline \begin{array}{l} \text { Estimated uncollectible } \\ \text { amount } \end{array} & \$ 2,550 & \$ 1,375 & \$ 740 & \$ 420 & \$ 5,085 \\ \hline \end{array}    -How much will the Uncollectible account expense for the year be? A)  $2,550 B)  $1,115 C)  $5,085 D)  $11,285  Perry Materials uses the aging method and has completed the following analysis of the accounts receivable:  Customer 130 Days 3160 Days 6190 Days  Over 90 Days  Total Balance  Johnson $4,600$3,200$7,800 Hot Pots, Inc. 8001,0001,800 Potter 40,00055040,550 Harrison 3,6009004,500 Marz 2,000502,050 Younger 65,00065,000 Merry Maids 5,9005,900 Acher 12,0006,40018,400 Totals $127,500$13,750$3,700$1,050$146,000 Uncollectible percentage 2%10%20%40% Estimated uncollectible  amount $2,550$1,375$740$420$5,085\begin{array}{|l|r|r|r|r|r|}\hline\text { Customer } & 1-30 \text { Days } & 31-60 \text { Days } & 61-90 \text { Days } & \begin{array}{c}\text { Over } 90 \\\text { Days }\end{array} & \text { Total Balance }\\\hline \text { Johnson } & \$ 4,600 & \$ 3,200 & & & \$ 7,800 \\\hline \text { Hot Pots, Inc. } & & & 800 & 1,000 & 1,800 \\\hline \text { Potter } & 40,000 & 550 & & & 40,550 \\\hline \text { Harrison } & & 3,600 & 900 & & 4,500 \\\hline \text { Marz } & & & 2,000 & 50 & 2,050 \\\hline \text { Younger } & 65,000 & & & & 65,000 \\\hline \text { Merry Maids } & 5,900 & & & & 5,900 \\\hline \text { Acher } & 12,000 & 6,400 & & & 18,400 \\\hline \text { Totals } & \$ 127,500 & \$ 13,750 & \$ 3,700 & \$ 1,050 & \$ 146,000 \\\hline \begin{array}{l}\text { Uncollectible percentage }\end{array} & 2 \% & 10 \% & 20 \% & 40 \% & \\\hline \begin{array}{l}\text { Estimated uncollectible } \\\text { amount }\end{array} & \$ 2,550 & \$ 1,375 & \$ 740 & \$ 420 & \$ 5,085 \\\hline\end{array}

-How much will the Uncollectible account expense for the year be?


A) $2,550
B) $1,115
C) $5,085
D) $11,285

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