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Blossom Company has accounts receivable of $87,400 at March 31, 2022. Credit terms are 2/10, 1/30. At March 31, 2022, there is a $2,244 credit
Blossom Company has accounts receivable of $87,400 at March 31, 2022. Credit terms are 2/10, 1/30. At March 31, 2022, there is a $2,244 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 Age of Accounts 2022 Estimated Percentage Uncollectible 2021 Current 1-30 days past due 31-90 days past due $59,100 $78,000 12,000 8,780 9,200 2,350 7.100 1.210 $87.400 $90,340 Over 90 days past due On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,529, Metlock, Inc. estimates that 7% of its accounts receivable balance of $77,800 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Metlock, Inc. determined that B. Jared's account was uncollectible and wrote off $1.168. On June 12,2022, Jared paid the amount previously written off. Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
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