Godfreid Company has accounts receivable of $95,400 at March 31, 2022. Credit terms are 2/10, n/30. At

Question:

Godfreid Company has accounts receivable of $95,400 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, 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.

Balance, March 31 2021 Estimated Percentage Age of Accounts Current 1-30 days past due 31-90 days past due Over 90 days

Instructions

a. Determine the total estimated uncollectibles at March 31, 2022.

b. Prepare the adjusting entry at March 31, 2022, to record bad debt expense.

c. Discuss the implications of the changes in the aging schedule from 2021 to 2022.

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...

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