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Crane Company has accounts receivable of $184,000 at September 30, 2021. An analysis of the accounts shows the following: Month of Sale Balance September $130,000
Crane Company has accounts receivable of $184,000 at September 30, 2021. An analysis of the accounts shows the following: Month of Sale Balance September $130,000 August 27,000 July 15,000 April, May, and June 12,000 $184,000 Credit terms are 2/10, n/30. The unadjusted balance in the Allowance for Doubtful Accounts on September 30, 2021, is $2,300 debit. The company uses an aging schedule to estimate uncollectible accounts. The company's percentage estimates of bad debts are as follows: Number of Days Estimated % Outstanding Uncollectible 0-30 1% 31-60 10% 61-90 25% Over 90 60% Prepare an aging schedule to determine the total estimated uncollectible accounts at September 30, 2021. Estimated Uncollectible 1% $ Age of Accounts Amount % 0-30 days outstanding $130,000 31-60 days outstanding 27,000 10% 61-90 days outstanding 15,000 25% Over 90 days outstanding 12,000 60% eTextbook and Media List of Accounts Question Part Score $ What is the carrying amount of the accounts receivable at September 30, 2021? Carrying amount +A eTextbook and Media List of Accounts --/5 Prepare the adjusting entry at September 30 to record bad debt expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Sept. 30 (To record estimate of uncollectible accounts.) Debit Credit
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