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View Full Version : How to adjust accounts receivable if the estimated percentage of realizable is 70%


maimil
Dec 8, 2009, 04:28 AM
For example..
accounts receivable 160,000
less: allowance for uncollectible accounts 16,000
144,000

How to adjust accounts receivable if the estimated percentage of realizable is 70%?
..

ROLCAM
Dec 14, 2009, 10:44 PM
1) 100% less 70% = 30%

2) 30% of $160,000 = $48,000

3) $48,000 less $ 16,000 = $32,000.

So, increase the allowance by $32,000.