expected E8-5 Stine Company has accounts receivable of $95,400 at March 31, 2014. An ana of the accounts shows these amounts. Balance, March 31 Month of Sale 2014 2013 March February December and January $65,000 12,900 10,100 7,400 $75,000 8,000 2,400 1,100 November and October $95,400 $86,500 Credit terms are 2/10, n/30. At March 31, 2014, there is a $2,100 credit balance in Allow- ance 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. Estimated Percentage Uncollectible Age of Accounts Current 2% 1-30 days past due 31-90 days past due Over 90 days past due 30 50 Instructions (a) Determine the total estimated uncollectibles. (b) Prepare the adjusting entry at March 31, 2014, to record bad debt expense. (c) Discuss the implications of the changes in the aging schedule from 2013 to 2014.

expected E8-5 Stine Company has accounts receivable of $95,400 at March 31, 2014. An ana of the accounts shows these amounts. Balance, March 31 Month of Sale 2014 2013 March February December and January $65,000 12,900 10,100 7,400 $75,000 8,000 2,400 1,100 November and October $95,400 $86,500 Credit terms are 2/10, n/30. At March 31, 2014, there is a $2,100 credit balance in Allow- ance 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. Estimated Percentage Uncollectible Age of Accounts Current 2% 1-30 days past due 31-90 days past due Over 90 days past due 30 50 Instructions (a) Determine the total estimated uncollectibles. (b) Prepare the adjusting entry at March 31, 2014, to record bad debt expense. (c) Discuss the implications of the changes in the aging schedule from 2013 to 2014.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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