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Godfreid Company has accounts receivable of $95,400 at March 31, 2022. Credit terms are 2/10,n/30. At March 31, 2022, there is a $2,100 credit balance
Godfreid Company has accounts receivable of $95,400 at March 31, 2022. Credit terms are 2/10,n/30. At March 31, 2022, there is a $2,100 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. Balance, March 31 Age of Accounts 2022 Estimated Percentage Uncollectible 2021 Current $65,000 $75,000 2 % 1-30 days past due 12,900 8,000 5 31-90 days past due 10,100 2,400 30 Over 90 days past due 7,400 1,100 50 $95.400 $86,500 (c) Discuss the implications of the changes in the aging schedule from 2021 to 2022. T T I. MI H 99 a TT
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