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Menge Company has accounts receivable of $109,700 at March 31. An analysis of the accounts shows the following information. Credit terms are 2/10, n/30. At
Menge Company has accounts receivable of $109,700 at March 31. An analysis of the accounts shows the following information.
Credit terms are 2/10, n/30. At March 31, Allowance for Doubtful Accounts has a credit balance of $1,500 prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The companys estimate of bad debts is shown below.
Determine the total estimated uncollectibles.
Prepare the adjusting entry at March 31 to record bad debt expense.
Balance, March 31 Month of Sale March February January Prior to January $67,000 25,300 9,500 7,900 $109,700Step by Step Solution
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