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

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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