Blain company has $10,000 of accounts receivable that are current, $5,000 that are between 0 and 30 days past due, $3,000 that are between 30 and 60 days past due, and $800 that are more than 60 days past due. blain estimates that 2% of the receivables that are current will be uncollectible, 5% of those between 0 and 30 days past due will be uncollectible, 10% of those between 30 and 60 days past due will be uncollectible, and 50% of those more than 60 days past due will be uncollectible. just prior to recognizing uncollectible accounts expense, blain’s allowance for doubtful accounts account has a $100 positive balance. assuming blain uses the aging method to estimate uncollectible accounts expense, the amount of uncollectible expense will be:

Assuming Blain uses the aging method to estimate uncollectible accounts expense, the amount of uncollectible expense will be:

$1050

Explanation:

Aging    

Current100002%200

1-30  50005%250

31-60300010%300

Over 60800         50%400

                   1150

Allowance bad debts100

Expense          1050

$1050 Using the aging method

Explanation:

$10,000 of accounts receivable that are current

$5,000 that are between 0 and 30 days past due

$3,000 that are between 30 and 60 days past due

$800 that are more than 60 days past due.

The percentages of the following accounts will be uncollectible

2% of $10000 are uncollectible=$200

5% of $5,000=$250

10% of 3000=$300

50% of $800=$400

the sum of the uncollectible is $1150

Note: Blain’s allowance for doubtful accounts account has a $100 positive balance.

so $1150-$100=$1050

step 1: create a plan

step 2: inventory facility equipment/assets

step 3: create preventive maintenance procedures

step 4: create preventive maintenance schedules

step 5: train your maintenanceteam

step 6: analyze – adjust - improve

or

step 1 – pm procedure design: doing the effective things

step 2 – pm procedure scheduling: efficient use of people and resources

step 3 – pm lubrication engineering

step 4 – pm training: back on the chain gang

step 5 – pm program management plan

step 6 – communicate, communicate, communicate