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Cullumber Company has accounts receivable of $92,000 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $1,949 credit
Cullumber Company has accounts receivable of $92,000 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $1,949 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. Age of Accounts Current 1-30 days past due 31-90 days past due Over 90 days past due Balance, March 31 2022 $61,400 $76,320 13,800 9,900 6,900 $92,000 2021 Total estimated uncollectibles 8,280 2,170 1,040 $87,810 Estimated Percentage Uncollectible Determine the total estimated uncollectibles at March 31, 2022. 2 % 5 28 49
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