Question
Cheyenne Ltd. has accounts receivable of $230,200 and an unadjusted debit balance in its allowance for doubtful accounts of $540 at March 31, 2021. An
Cheyenne Ltd. has accounts receivable of $230,200 and an unadjusted debit balance in its allowance for doubtful accounts of $540 at March 31, 2021. An analysis of the accounts receivable shows these amounts:
a)
b) Prepare any required adjusting entry at March 31, 2021 to record bad debt expense.
c) What is the carrying amount of the receivables at March 31, 2021? Carrying Amount _____________?
d) For this part only, assume instead that the unadjusted balance in the allowance for doubtful accounts is $850 credit. Prepare any required adjusting entry at March 31, 2021 to record bad debt expense.
Month of Sale March (0-30) February (31-60) January (61-90) October-December (over 90) Amount $148,700 22,600 33,600 25,300 The company's percentage estimates of its uncollectible accounts are as follows: Estimated % Uncollectible 1% Number of Days Outstanding 0-30 31-60 61-90 Over 90 10% 30% 60% Prepare an aging schedule to determine the total estimated uncollectibles at March 31, 2021. Number of Days Outstanding Estimated % Uncollectible Estimated Uncollectible Amount 0-30 $ 31-60 61-90 Over 90 Total
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