Question

Exercise 9-06 a-b Whispering Company has accounts receivable of $108,600 at March 31, 2020. Credit terms are 2/10, n/30. At March 31, 2020, there is a $1,500 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 estimate of bad debts is shown below. Age of Accounts Current 1-30 days past due 31-90 days past due Over 90 days past due Estimated Balance, Percentage March 31 Uncollectible 2020 2019 $72,300 $75,000 4% 18,200 8,000 7% 9,300 2,400 24% 8,800 1,100 55% $108,600 $86,500 Determine the total estimated uncollectibles. Total estimated uncollectibles SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the adjusting entry at March 31, 2020, to record bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Mar. 31 Click if you would like to Show Work for this question: Open Show Work

Answer 1

Ans Days Account Receivable * (07.)Percent Uncollectible = Estimated Uncollectible Current $72,300 Х 4.00% = $ 2,892 1-30 days Past due $ 18, 200 Х 7.00% = $ 1,274 31 - 90 day $ 9,300 Х 24.00% a = $ 2,232 past due Over Godoy Past due $ 8,800 х 55.00% a $ 4,840 Total Estimated Balance of allowance for Doubtful Alcounts $11,238 Ango) Thence. total estimated The $ 1238. Uncollectibles M

2 2) Anyo) Prepare the adjusting Entry at Merch 31, 2020, to record bad debt Expense Credit $9,738 Date Account Titles And Explanation Debit March 31, Bad debts Expense Alc. Dr. $9, 738 To Allowance for Doubtful Ak (To record bad debte Expense or to record adjusting Entry) lalorking alotes - Credit Balance Balance Of Allowance for Chcollectible $11,238 Estimated lesso Credit Balane of Allowance for Oncollectible Acz (1,500) [Prior to adjustment] Total Bad debts to be recorded $ 9738

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