FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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CAN SOMEONE HELP ME FIGURE OUT THE TOTAL ESTIMATED UNCOLLECTIBIES AND THE BAD DEBIT EXPENSE ?

 

Skysong Company has accounts receivable of $112,400 at March 31, 2020. Credit terms are 2/10, n/30. At March 31, 2020, there is a $1,500 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 estimate of bad debts is shown below.

Balance,
Estimated Percentage
Age of Accounts
March 31
Uncollectible
2020
2019
Current
$78,000
$75,000
2%
1-30 days past due
18,200
8,000
7%
31-90 days past due
8,600
2,400
23%
Over 90 days past due
7,600
1,100
51%
$112,400
$86,500
(a)
Determine the total estimated uncollectibles.
Total estimated uncollectibles
%24
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Transcribed Image Text:Balance, Estimated Percentage Age of Accounts March 31 Uncollectible 2020 2019 Current $78,000 $75,000 2% 1-30 days past due 18,200 8,000 7% 31-90 days past due 8,600 2,400 23% Over 90 days past due 7,600 1,100 51% $112,400 $86,500 (a) Determine the total estimated uncollectibles. Total estimated uncollectibles %24
Prepare the adjusting entry at March 31, 2020, 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
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Transcribed Image Text:Prepare the adjusting entry at March 31, 2020, 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
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