Determine the total estimated uncollectibles
Question # 00766665
Posted By:
Updated on: 06/24/2020 07:00 AM Due on: 06/30/2020
Exercise - Oriole Company has accounts receivable of $92,000 at March 31, 2017. Credit terms are 2/10, n/30. At March 31, 2017, there is a $1,949 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimates of bad debts are as shown below.
|
Age of Accounts |
Balance, March 31 |
Estimated |
|
|
2017 |
2016 |
||
|
Current |
561,400 |
576,320 |
2% |
|
1-30 days past due |
13,800 |
8,280 |
5 |
|
31-90 days past due |
9,900 |
2,170 |
28 |
|
Over 90 days past due |
6,900 |
1,040 |
49 |
|
$92,000 |
$87,810 |
||
Determine the total estimated uncollectibles.
Prepare the adjusting entry at March 31, 2017, to record bad debt expense.
-
Rating:
/5
