roblem 3. Hach Company has accounts receivable of $95,100 at March 31, 2018. An analysis of the accounts shows these amounts. Month of Sale Balance, March 31, 2018 March 2018 $65,000 February 2018 12,600 December 2017 and January 2018 10,100 November and October 2017 7,400 Total $95,100 Credit terms are 2/10, n/30. At March 31, 2018, there is a $2,200 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 Estimated Percentage Uncollectible Current 2% 1-30 days past due 7% 31-90 days past due 30% Over 90 days 50% Instructions (a) Determine the total estimated uncollectible. (b) Prepare the adjusting entry at March 31, 2018, to record bad debts expense.
Problem 3. Hach Company has accounts receivable of $95,100 at March 31, 2018. An analysis of the accounts shows these amounts.
|
Month of Sale |
Balance, March 31, 2018 |
|
March 2018 |
$65,000 |
|
February 2018 |
12,600 |
|
December 2017 and January 2018 |
10,100 |
|
November and October 2017 |
7,400 |
|
Total |
$95,100 |
Credit terms are 2/10, n/30. At March 31, 2018, there is a $2,200 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
|
Age of Accounts |
Estimated Percentage Uncollectible |
|
Current |
2% |
|
1-30 days past due |
7% |
|
31-90 days past due |
30% |
|
Over 90 days |
50% |
Instructions
(a) Determine the total estimated uncollectible.
(b) Prepare the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
