Question

Of Costello Compar X murses/16807/assignments/431304?module_itemid=861859 View Policies Current Attempt in Progress Wildhorse Co. has accounts receivable of $92,000 at March 31, 2020. Credit terms are 2/10, n/30. At March 31, 2020, there is a $2,230 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. Balance, March 31 Estimated Percentage Age of Accounts 2019 2020 Uncollectible $61,600 $78,910 Current 2% 1-30 days past due 14,100 7,420 5 31-90 days past due 9,500 2,280 31 Over 90 days past due 6,800 1,200 52 $92,000 $89.810 Determine the total estimated uncollectibles $ The total estimated uncollectibles un

Answer 1

Answer 1

Total estimated uncollectibles

$    8,418

Answer 2

Date	Account	Debit	Credit
March 31, 2022	Bad debts expense	$ 6,188
	Allowance for doubtful accounts		$ 6,188
	(To record bad debt expense)

Detailed workings

Age of Accounts	receivable	%	Uncollectible Allowance
Current	$     61,600	2%	$                                    1,232
1 to 30	$     14,100	5%	$                                        705
31 to 90	$       9,500	31%	$                                    2,945
over 90 days	$       6,800	52%	$                                    3,536
Total			$                                    8,418