Exercise 8-5 (Part Level Submission) Tamarisk, Inc. has accounts receivable of $

Question

Exercise 8-5 (Part Level Submission) Tamarisk, Inc. has accounts receivable of $96,500 at March 31, 2017. Credit terms are 2/10, n/30. At March 31, 2017, there is a $2,244 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 2017 2016 Uncollectible of $66,000 $79,900 1-30 days past due13,000 7,930 31-90 days past due 10,600 2,540 Over 90 days past due 6,9001,060 $96,500 $91,430 Current 2% 54 (a) Your Determine the total estimated uncollectibles. The total estimated uncollectibles

Explanation / Answer

ADJUSTING ENTRY ON MARCH 31,2017 :

DATE ACCOUNTS & EXPLANATION DEBIT CREDIT Mar 31 Bad debt expenses a/c (9194-2244) 6950     Allowance for doubtful accounts 6950 (To record balance adjusted)

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