XXXXXXXXXX23question in essay format 5.3 page 208

SOLUTION TO 5.17
        STATEMENT SHOWING ALLOWANCWS FOR UNCOLLECTIBLE
        ACCOUNT AGE    AMOUNT    PROBABLITY OF NON
COLLECTION    IF POLICY NOT AFFECTED            IF POLICY AFFECTED
                    ALLOWANCE FOR
UNCOLLECTIBLE ACCOUNTS
    BAD DEBT    NET REALIZABLE
    ALLOWANCE FOR
UNCOLLECTIBLE ACCOUNTS    BAD DEBT    NET REALIZABLE
IF POLICY AFFECTED
        0 TO 30 DAYS    600,000.00    0.75%    4,500.00    - 0    595,500.00    4,500.00    0    595,500.00
        31 TO 60 DAYS    300,000.00    2.00%    6,000.00    - 0    294,000.00    6,000.00    0    294,000.00
        61 TO 90 DAYS    150,000.00    3.00%    4,500.00    - 0    145,500.00    4,500.00    0    145,500.00
        91 TO 120 DAYS    90,000.00    5.00%    4,500.00    - 0    85,500.00    4,500.00    0    85,500.00
        OVER 120 DAYS    50,000.00    30.00%    15,000.00    - 0    35,000.00    0    50,000.00    - 0
                    34,500.00    - 0    1,155,500.00    19,500.00    50,000.00    1,120,500.00
        SOLUTION
        PARTICULARS            POLICY NOT AFFECTED     POLICY AFFECTED    Difference on
implementation    REMARK    REASON FOR CHANGES
                    AMOUNT    AMOUNT    AMOUNT
        ALLOWANCES FOR UNCOLLECTIBLE ACCOUNT            34,500.00    19,500.00    15,000.00    Allowances for uncollectible will reduce    As the receivable due over 120 days
has been written off and hence has been reduced. So the amount which is due over 120 days is not expected to be recovered
        BALANCE IN ACCOUNT RECEIVABLE            1,155,500.00    1,120,500.00    35,000.00    Balance in account receivable will reduce
        NET...