Question

Company has accounts receivable of $95,500 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $2,296 credit balance in Allowance for Doubtful Accounts p 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 2022 2021 Uncollectible Current $66,400 $68,240 1-30 days past due 12,600 7,280 31-90 days past due 9,100 2,540 Over 90 days past due 7,400 1,090 $95,500 $79,150 Determine the total estimated uncollectibles at March 31, 2022. Total estimated uncollectibles SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO 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

Answer 1	Total estimated uncollectibles	8058

Calculated as

Age of Accounts	receivable	%	Uncollectible Allowance
Current	$     66,400	2%	$                                    1,328
1 to 30	$     12,600	5%	$                                        630
31 to 90	$       9,100	28%	$                                    2,548
over 90 days	$       7,400	48%	$                                    3,552
Total			$                                    8,058

Answer 2

Date	Account	Debit	Credit
March 31, 2022	Bad debts expense	$ 5,762
	Allowance for doubtful accounts		$ 5,762
	(To record bad debt expense)

Bad debt expense = Estimated amount of uncollectibles - credit balance in allowances for uncollectible account

= $8058-$2296

= $5762

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