Question

Documents - Word Search t References Mailings Review View Help Table Design Layout 1.1.1.2.1.3.1.4.1.5.1:61:7 IAB 19.110 111 112 113 114 115 116 Question 1 S IST Ridgewood Corporation has accounts receivable of $95,700 at March 31, 2018. An analysis of the accounts shows these amounts. Month of Sale March (current) February (1 - 30 days past due) December and January (31 - 90 days past due) (over 90 days past due) Balance, March 31 2018 2017 $64,300 $76,500 13,700 7,800 10,000 2,700 7,700 1,100 $95,700 $88,100 Credit terms are 2/10, n/30. At March 31, 2018, there is an unadjusted $2,200 credit balance in Allowance for Doubtful Accounts. The company uses the percentage of receivables by age category for estimating uncollectible accounts Ridgewood's estimates of bad debts are as shown below. Age of Accounts Current 1-30 days past due 31-90 days past due Over 90 days past due Estimated Percentage Uncollectible 3% 6% 30% 50% Don't show me this message again for the assignment SISISI Prepare an aging schedule to determine the total estimated uncollectibles at March 31, 2018 Accounts Receivable Amount % Current D Focus acer . SWIF

Answer 1

Ans 1 Accoun Receivable Amount (A) (B) 3% Current 1-30 days past due 31-90 days past due Over 90 days past due 6% Estimate uncollectible (A) x (B) $1,929 $822 $3,000 $3,850 $9,601 $64,300 $13,700 $10,000 $7,700 $95,700 30% 50% Total estimated uncollectible at March, 31 2018 is $8418 Ans 2 Desired balance in Allowance for doubtful accounts Less: Balance before adjusting entry Bad debt entry to be passed $9,601 -$2,200 $7,401 Debit Date Mar 31 Credit $7,401 Account Title Bad Debt Expense Allowance for Doubtful Accounts (To record bade debt expense ) $7,401