Number of Days Outstanding 0-30 31-60 61-90 Over 90 Total Accounts Estimated Per

Question

Number of Days Outstanding 0-30 31-60 61-90 Over 90 Total Accounts Estimated Percentage Receivable $257,000 46,400 33,100 27,500 $364,000 Uncollectible 2% 10% 30% 50% Prepare an aging schedule to determine the total estimated uncollectibles at March 31 Age of Accounts Amount % Estimated Uncollectible 0-30 days 31-60 days 61-90 days Over 90 days $257,000 2% 46,400 1090 33,100 30% 27,500 50% SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the adjusting entry at March 31 to record bad debts expense. (Credit account titles are aut amounts.) Date Account Titles and Explanation Debit Credit Mar. 31

Explanation / Answer

Allowance for uncollectible = Estimated uncollectible - Unadjusted credit balance in Allowance for Doubtful Accounts

= 33,460 - 8,200

= 25,260

Adjusting entry at March 31 to record bad debt expense

Age of Accounts Amount % Estimated Uncollectible 0-30 days 257,000 2% 5,140 (257,000 * 2%) 31 - 60 days 46,400 10% 4,640 (46,400 * 10%) 61 - 90 days 33,100 30% 9,930 (33,100 * 30%) Over 90 days 27,500 50% 13,750 (27,500 * 50%) 33,460

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