Menge Company has accounts receivable of $93,100 at March 31. An analysis of the accounts shows the following information.
|
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determine the total estimated un collectibles 617239
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|
Balance, March 31 |
|
March |
$60,000 |
|
February |
17,600 |
|
January |
8,500 |
|
Prior to January |
7,000 |
|
$93,100 |
Credit terms are 2/10, n/30. At March 31, Allowance for Doubtful Accounts has a credit balance of $1,200 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 |
Estimated Percentage |
|
1-30 days |
2.0% |
|
31-60 days |
5.0% |
|
61-90 days |
20.0% |
|
Over 90 days |
50.0% |
Instructions
(a)Determine the total estimated un collectibles.
(b)Prepare the adjusting entry at March 31 to record bad debt expense.
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