Weygandt Accounting Principles 12e Assignment Gradebook ORIO

Weygandt, Accounting Principles, 12e Assignment Gradebook ORION Downloadable eTextbook nt Exercise 9-4 Menge Company has accounts receivable of $113,300 at March 31. Credit terms are 2/10, n/30. At March uncollectible accounts. The company\'s estimate of bad debts is shown below Estimated Age of Balance, Percentage Accounts March 31 Uncollectible 1-30 days $76,100 296 31-60 days 19,800 6% 61-90 days Over 90 days 7,800 51% 9,600 25% 113,300 Determine the total estimated uncollectibles. Total estimated uncollectibles s LINK TO TEXT Prepare the adjusting entry at March 31 to record bad debt expense. (Credit account titles are automat Account Titles and Explanation Date Mar 31 1 Debit Credit PiLS 2020.2038 30hn wiley & Sons Jos, All Rights Reserved. A Division of 2ahn Wilex A sana, Inc.

Solution

Total Estimated Uncollectibles = $9,088

Age of Accounts Receivables

Balance

Percentage of Uncollectible

Total Estimated Uncollectible

1-30 Days

$76,100

2%

$1,522

31-60 Days

$19,800

6%

$1,188

61-90 Days

$9,600

25%

$2,400

Over 90 Days

$7,800

51%

$3,978

$9,088

Adjusting Entry at March 31 to record Bad Debt Expense

Date

Accounts Tittles and Explanations

Debit ($)

Credit ($)

March 31

Bad Debt Expense A/c

7,588

To Allowance for Doubtful Accounts

7,588

Bad Debt Expense

= Total Estimated Uncollectible – Credit balance in Allowance for Doubtful Accounts

= $9,088 – 1,500

= $7,588

Age of Accounts Receivables	Balance	Percentage of Uncollectible	Total Estimated Uncollectible
1-30 Days	$76,100	2%	$1,522
31-60 Days	$19,800	6%	$1,188
61-90 Days	$9,600	25%	$2,400
Over 90 Days	$7,800	51%	$3,978
			$9,088