Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sandhill Co. has accounts receivable of $97,200 at March 31, 2022. Credit terms are 2/10,n/30. At March 31, 2022, there is a $1.891 credit balance

image text in transcribed
image text in transcribed
Sandhill Co. has accounts receivable of $97,200 at March 31, 2022. Credit terms are 2/10,n/30. At March 31, 2022, there is a $1.891 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. Age of Accounts Current 1-30 days past due 31-90 days past due Over 90 days past due Balance; March 31 2022 2021 $64,800 $79,610 13,800 7.710 10,500 2.480 8,100 1,170 $97,200 $90,970 Estimated Percentage Uncollectible 2 % 5 29 47 Determine the total estimated uncollectibles at March 31.2022 Total estimated uncollectibles $ 8838 Prepare the adjusting entry at March 31, 2022, to record bad debt expense. (Credit account titles are automatically Indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services An Integrated Approach

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley

11th Edition

0131867121, 978-0131867123

More Books

Students also viewed these Accounting questions

Question

What do you need to know about your students to motivate them?

Answered: 1 week ago

Question

A service window closes just as they get to the front of the line.

Answered: 1 week ago