Crane Company has accounts receivable of $98,600 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $2,227 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 List of Accounts $68,400 $69.990 13,700 eTextbook and Media 9,700 6,800 Total estimated uncollectibles $ 2021 7,880 $98,600 $81,370 2,400 Determine the total estimated uncollectibles at March 31, 2022. Account Titles and Explanation 1.100 Estimated Percentage Uncollectible 2 % 5 28 49 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.) Debit Credit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Crane Company has accounts receivable of $98,600 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a
$2,227 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
List of Accounts
$68,400 $69.990
13,700
eTextbook and Media
9,700
6,800
2021
Total estimated uncollectibles $
7,880
2,400
$98,600 $81,370
1.100
Determine the total estimated uncollectibles at March 31, 2022.
Estimated Percentage
Uncollectible
2 %
5
28
49
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
Transcribed Image Text:Crane Company has accounts receivable of $98,600 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $2,227 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 List of Accounts $68,400 $69.990 13,700 eTextbook and Media 9,700 6,800 2021 Total estimated uncollectibles $ 7,880 2,400 $98,600 $81,370 1.100 Determine the total estimated uncollectibles at March 31, 2022. Estimated Percentage Uncollectible 2 % 5 28 49 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
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