Question
A1 Salon Supply Company has accounts receivable of $95,100 at March 31, 2025. An analysis of the accounts shows these amounts: Balance, March 31 Month
A1 Salon Supply Company has accounts receivable of $95,100 at March 31, 2025. An analysis of the accounts shows these amounts: Balance, March 31 Month of Sale 2025 2024 March $65,000 $75,000 February 12,600 8,000 December and January 10,100 2,400 October and November 7,400 1,100 $95,100 $86,500 Credit terms are 2/10, n/30. At March 31, 2025, there is a $2,500 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 uncollectibles are as shown below: Estimated Percentage Age of Accounts Uncollectible Current 2% 130 days past due 7 3190 days past due 25 Over 90 days past due 50 Instructions
(a) Determine the total estimated uncollectible accounts receivable at March 31, 2025.
(b) Prepare the adjusting entry at March 31, 2025 to record bad debts expense.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started