Question
Sweet Acacia Industries 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
Sweet Acacia Industries 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 companys estimates of bad debts are as shown below.
Balance, March 31 | Estimated Percentage Uncollectible | ||||||
---|---|---|---|---|---|---|---|
Age of Accounts | 2022 | 2021 |
| ||||
Current | $64,800 | $79,610 | 2 | % | |||
130 days past due | 13,800 | 7,710 | 5 | ||||
3190 days past due | 10,500 | 2,480 | 30 | ||||
Over 90 days past due | 8,100 | 1,170 | 50 | ||||
$97,200 | $90,970 |
Determine the total estimated uncollectibles at March 31 2022.
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