Parry Company has accounts receivable of $95,400 at March 31, 2012. An analysis of the accounts shows

Question:

Parry Company has accounts receivable of $95,400 at March 31, 2012. An analysis of the accounts shows these amounts.

Credit terms are 2/10, n/30. At March 31, 2012, there is a $2,100 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.

Instructions(a) Determine the total estimated uncollectibles.(b) Prepare the adjusting entry at March 31, 2012, to record bad debts expense.(c) Discuss the implications of the changes in the aging schedule from 2011 to 2012.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Aging Schedule
Aging schedule is an accounting table that shows a company’s account receivables. It is an summarized presentation of accounts receivable into a separate time brackets that the rank received based upon the days due or the days past due. Generally...