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Ayayal Company has accounts receivable of $118,400 at March 31, 2020. Credit terms are 2/10,n/30. At March 31, 2020, there is a $1,400 credit balance
Ayayal Company has accounts receivable of $118,400 at March 31, 2020. Credit terms are 2/10,n/30. At March 31, 2020, there is a $1,400 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 estimate of bad debts is shown below. Estimated Percentage Uncollectible Age of Accounts Balance March 31 2020 2019 $80,700 $75,000 20,100 8,000 9.000 22:00 8,600 1,100 $118.400 $86,500 Current 1-30 days past due 31-90 days past due Over 90 days past due 3% 6% 21% 50% (a) Determine the total estimated uncollectibles
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