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Ingles Company has accounts receivable of $93100 at March 31 An analysis of the accounts shows the information Month of Sale Balance March 31 March

Ingles Company has accounts receivable of $93,100 at March 31. An analysis of the accounts shows the information.
Month of Sale 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 as follows.
Estimated Percentage
Age of Accounts Uncollectible
1–30 days…………….…. 2.0%
31–60 days……………… 5.0%
61–90 days……………… 30.0%
Over 90 days……………. 50.0%
Instructions
(a) Determine the total estimated uncollectibles.
(b) Prepare the adjusting entry at March 31 to record bad debts expense.

May 09 2020 View more View Less

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