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Receivables E8.6 (LO 2) Godfreid Company has accounts receivable of $95,400 at March 31, 2020. Credit terms are 2/10, n/30. At March 31, 2020, there

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Receivables E8.6 (LO 2) Godfreid Company has accounts receivable of $95,400 at March 31, 2020. Credit terms are 2/10, n/30. At March 31, 2020, there is a $2,100 credit balance in Allowance for Doubtful Accounts prior to adjustment. accounts. The company's estimates of bad debts are as shown below The company uses the percentage-of-receivables basis for estimating uncollectible Balance, March 31 Estimated Percentage Uncollectible Age of Accounts 2020 2019 Current 2% $65,000 $75,000 8,000 1-30 days past due 31-90 days past due Over 90 days past due 12,900 10,100 2,400 30 7,400 1,100 50 $95,400 $86,500 Instructions a. Determine the total estimated uncollectibles. b. Prepare the adjusting entry at March 31, 2020, to record bad debt expense. c. Discuss the implications of the changes in the aging schedule from 2019 to 2020. E8.7 (LO 2) At December 31, 2019, Blanda Company had a credit balance of $15,000 in Allowance for Doubtful Accounts. During 2020, Blanda wrote off accounts totaling $11,000. One of those accounts ($1,800) was later collected. At December 31, 2020, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $19,000. E8.10 (LO 2) Presented below are two independent situations. Instructions a. On April 2, Jennifer Elston uses her JCPenney Company credit card to purchase merchandise from a JCPenney store for $1,500. On May 1, Elston is billed for the $1,500 amount due. Elston pays $500 on the balance due on May 3. Elston receives a bill dated June 1 for the amount due, including interest at 1.0% per month on the unpaid balance as of May 3, Prepare the entries on JCPenney Co.'s books related to the transactions that occurred on April 2, May 3, and June 1. b. On July 4, Spangler's Restaurant accepts a Visa card for a $200 dinner bill. Visa charges a 2% ser- vice fee. Prepare the entry on Spangler's books related to this transaction. E8.11 (LO 2) Colaw Stores accepts both its own and national credit cards. During the year, the following selected summary transactions occurred. Made Colaw credit card sales totaling $18,000. (There were no balances prior to January 15.) Made Visa credit card sales (service charge fee 2%) totaling $4,500. Jan. 15 20

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