Menge Company has accounts receivable of $108,000 at March 31. Average Age of Receivables Balance, March 31 Month of Sale Outstanding March $64,800 16 days February 25,200 48 days January 9,600 73 days Prior to January 8,400 110 days 108,000 Credit terms are 2/10, n/30. At March 31, Allowance for Doubtful Accounts has a credit balance of $1,400 prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimate of bad debts is shown below. Estimated Percentage Uncollectible Age of Accounts 1-30 days 2.0% 31-60 days 7.0% 61-90 days 22.0% Over 90 days 50.0% Determine the total estimated uncollectibles. Total estimated uncollectibles Prepare the adjusting entry at March 31 to record bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Mar. 31

View transaction list 1 Bad debts are estimated to be 4% of credit sales. 2 Bad debts are estimated to be 3% of total sales. 3 An aging analysis estimates that 7% of year-end accounts receivable are uncollectible. EX EX:

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The ledger of Teal Mountain Inc. at the end of the current year shows Accounts Receivable $74,000; Credit Sales $810,000; and Sales Returns and Allowances $36,000. If Teal Mountain uses the direct write-off method to account for uncollectible accounts, journalize the entry if on December 31 Teal Mountain determines that Matisse Company's $750 balance is uncollectible. (a) If Allowance for Doubtful Accounts has a credit balance of $1,400 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 11% of accounts receivable. (b) If Allowance for Doubtful Accounts has a debit balance of $600 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 9% of accounts receivable. (c) Prepare journal entries to record the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit (a) Dec.…