Question

Blossom Company has accounts receivable of $92,000 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, 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. Estimated Percentage Uncollectible Age of Accounts Current 1-30 days past due 31-90 days past due Over 90 days past due Balance, March 31 2022 2021 $61,600 $78,910 14,100 7,420 9,500 2,280 6,800 1,200 $92,000 $89,810 Determine the total estimated uncollectibles at March 31, 2022. Total estimated uncollectibles $ e Textbook and Media List of Accounts Prepare the adjusting entry at March 31, 2022, to record bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

Answer 1

Ans 1 Age of accounts Current 1-30 days past due 31-90 days past due Over 90 days past due Estimated Balance March 31, 2022 Percentage uncollectible (A) (B) $61,600 2% $14,100 5% $9,500 31% $6,800 52% $92,000 Allowance for uncollectible accounts (A) x (B) $1,232 $705 $2,945 $3,536 $8,418 Total estimated uncollectible at March, 31 2022 is $8418 Ans 2 Desired balance in Allowance for uncollectible accounts Less: Balance before adjusting entry Bad debt entry to be passed $8,418 -$2,230 $6,188 Debit Credit $6,188 Account Title Bad Debt Expense Allowance for Uncollectible Accounts (To record bade debt expense ) $6,188