Accounting and governance

Accounting for receivables

Answers for E 7.7

iPad 6:42 pm Financial Accounting: Reporting, Analysis and Decision Making. Aa 4 a A 97%- Marc Pty Ltd has accounts receivable of $925 accounts shows these amounts: 1 March 2019. An analysis of the Balance, 31 March Month of sale March February December and January November and October 2019 2018 $65 000 12 600 8 500 6 400 $92 500 $75 000 8 000 2 400 1 100 $86 500 Credit terms are 2/7, n/30. At 31 March 2019 there is a $1600 credit balance in allowance for doubtful debts before adjustment. The entity uses the ageing of accounts receivable basis for estimating uncollectable accounts. Marc Pty Ltd's estimates of bad debts are as follows: Estimated percentage uncollectable 2.096 5.0 Age of accounts Current 1-30 days past due 31-90 days past due Over 90 days 30.0 50.0 Required a. Determine the total estimated uncollectables. b. Prepare the adjusting entry at 31 March 2019 to record bad debts expense. c. Discuss the implications of the changes in the ageing schedule from 2018 to 483