52) USE THIS INFORMATION FOR THE NEXT 4 QUESTIONS – Gautier…
52) USE THIS INFORMATION FOR THE NEXT 4 QUESTIONS – Gautier Company uses the aging of accounts receivable allowance method of accounting for uncollectible accounts. At the beginning of Year 2, Gautier had a normal balance of $1,000 in the allowance for doubtful accounts. There were no write-offs or recoveries of uncollectible accounts during Year 2. Gautier prepared the following accounts receivable aging schedule on December 31, Year 2: Number of Days Past Due Receivables Amount % Likely to be Uncollectible Required Allowance Current $25,000 1% $250 0 to 30 $8,300 2% $166 31 to 60 $9,000 8% $720 61 to 90 $2,150 30% $645 Over 90 $1,000 50% $500 Total $45,450 $2,281 Required: Using the above information, calculate the following amounts to be reported on Gautier’s Year 2 financial statements. (Assume the adjusting entry to estimate uncollectible accounts has been made.) Each underlined blank is worth 1 point (4 points total).