Hachey Company has accounts receivable of $95,100 at March 31, 2022. An analysis of the accounts shows these amounts.

Balance, March 31

Month of Sale 2022 2021

March $65,000 $75,000

February 12,600 8,000

December and January 10,100 2,400

November and October 7,400 1,100

$95,100 $86,500

Credit terms are 2/10, n/30. At March 31, 2022, there is a $2,500 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

Estimated Percentage

Age of Accounts Uncollectible

Current 2%

130 days past due 7

3190 days past due 25

Over 90 days past due 50

Instructions

(a) Determine the total estimated uncollectible accounts receivable.

(b) Prepare the adjusting entry at March 31, 2022 to record bad debts expense.

Hachey Company has accounts receivable of $95,100 at March 31, 2022. An analysis of the accounts shows these amounts.

Balance, March 31

Month of Sale 2022 2021

March $65,000 $75,000

February 12,600 8,000

December and January 10,100 2,400

November and October 7,400 1,100

$95,100 $86,500

Credit terms are 2/10, n/30. At March 31, 2022, there is a $2,500 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

Estimated Percentage

Age of Accounts Uncollectible

Current 2%

130 days past due 7

3190 days past due 25

Over 90 days past due 50

Instructions

(a) Determine the total estimated uncollectible accounts receivable.

(b) Prepare the adjusting entry at March 31, 2022 to record bad debts expense.