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Cullumber Company has accounts receivable of $92,700 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $2,196 credit
Cullumber Company has accounts receivable of $92,700 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $2,196 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 $60,300 $67,720 14,100 10,800 7,500 $92,700 2021 Total estimated uncollectibles $ 7,600 2,580 1,120 $79,020 Estimated Percentage Uncollectible Determine the total estimated uncollectibles at March 31, 2022. 2% 5 32 55
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