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Accounts receivable balance

Please help with the following problem.

Elway Company ages its accounts receivable to estimate bad debts for financial statement purposes.
President Elway is at a meeting with creditors and needs to know his total accounts receivable balance. Unfortunately, Elway picked up the wrong computer report and has, instead, a summary printout of the company's estimated bad debts as follows:

Age of Receivable Bad Debt % uncollectible
0-30 days $ 1,750 0.5%
31-60 days 1,500 1.5%
61-120 days 4,000 8.0%
more than 120 days 17,500 70.0%

Calculate the accounts receivable balance based on Elway's bad debt summary.


Solution Preview

Since we are given the % uncollectible, then the bad debt amount would be calculated as Receivable balance X % uncollectible = Bad Debt. What is uncollectible is ...

Solution Summary

The following solution explains how to calculate the accounts receivable balance based on the bad debt summary. Step by step calculations are provided.