Question

GNMENT RESOURCES Homework tions with Video stance Exercise 3-6 Ivanhoe Company has accounts receivable of $92,700 at March 31, 2019. Credit terms are 2/10, n/30. At March 31, 2019, there is a $2,196 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. cw Score ew Results by Study 29 ective Balance, March 31 Estimated Percentage Age of Accounts 2019 2018 Uncollectible Current $60,300 $67,720 1-30 days past due 14,100 7,600 31-90 days past due 10,800 2.580 Over 90 days past due 7,500 1,120 $92,700 $79,020 Determine the total estimated uncollectibles for 2019. The total estimated uncollectibles SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEOSIMILAR EXERCISE VIDEO APPLIED SKILLS Prepare the adjusting entry at March 31, 2019, to record bad debt expense. (Credit account titles are automatically Indented when amount is entered. Do not indent manually.)

Answer 1

Calculate total estimated uncollectible

Days	Amount	% Uncollectible	$ Uncollectible
Current	60300	2%	1206
1-30 days	14100	5%	705
31-90 days	10800	32%	3456
Over 90	7500	55%	4125
Total			9492

Total estimated uncollectible = $9492

Adjusting entry

Date	account and explanation	Debit	credit
Dec 31	Bad debt expense (9492-2196)	7296
	Allowance for doubtful accounts		7296