Question
Crane Company has accounts receivable of $96,800 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $2,018 credit
Crane Company has accounts receivable of $96,800 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $2,018 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The companys estimates of bad debts are as shown below.
Balance, March 31 | Estimated Percentage Uncollectible | ||||||
---|---|---|---|---|---|---|---|
Age of Accounts | 2022 | 2021 | |||||
Current | $67,300 | $78,800 | 2 | % | |||
130 days past due | 12,000 | 8,350 | 5 | ||||
3190 days past due | 10,500 | 2,600 | 32 | ||||
Over 90 days past due | 7,000 | 1,050 | 47 | ||||
$96,800 | $90,800 |
(a)
Determine the total estimated uncollectibles at March 31, 2022.
Total estimated uncollectibles | $Enter a dollar amount |
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