Question
Gemini Ltd. has an Accounts Receivable amount of $370,000 and an unadjusted credit balance in Allowance for Doubtful Accounts of $8,800 at March 31. The
Gemini Ltd. has an Accounts Receivable amount of $370,000 and an unadjusted credit balance in Allowance for Doubtful Accounts of $8,800 at March 31. The company's accounts receivable and percentage estimates of its uncollectible accounts are as follows: Number of Days Outstanding Accounts Receivable Estimated Percentage Uncollectible 0-30 $260,000 2% 31-60 50,400 10% 61-90 34,000 30% Over 90 25,600 50% Total $370,000 Instructions (a) Prepare an aging schedule to determine the total estimated uncollectibles at March 31. (b) Prepare the adjusting entry at March 31 to record bad debts expense. (c) What is the carrying amount of the receivables at March 31?
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