University - Year 2

Accounting

1.) A/R Percent of Required

      Balance uncollectible allowance
1,700,00
Not yet due 0 - -
1,200,00
1 to 30 days past due 0 5% 60,000
31 to 60 days past due 100,000 25% 25,000
61 to 90 days past due 150,000 50% 75,000
Over 90 days past due 120,000 100% 120,000
3,270,00
0 280,000

2.) Allowance for D/A - January 1 170,000

Recoveries 30,000
Doubtful accounts expense 345,000
Total 545,000
Less: Writeoff (235,000+30,000) -265,000
Required allowance - December 31 280,000

3.) Doubtful accounts expense 345,000

Allowance for doubtful accounts 345,000
4.) Accounts receivable 3,270,000
Less: Allowance for doubtful accounts -280,000
Net realizable value 2,990,000