Marx Corporation has accounts receivable of $96,000 at March 31, 2018. An analysis of the accounts shows these amounts. Balance, March 31 Month of Sale 2018 2017 March (current) $65,900 $76,200 February (1 – 30 days past due) 12,900 7,900 December and January (31 – 90 days past due) 10,100 2,100 (over 90 days past due) 7,100 1,200 $96,000 $87,400 Credit terms are 2/10, n/30. At March 31, 2018, there is an unadjusted $2,300 credit balance in Allowance for Doubtful Accounts. The company uses the percentage of receivables by age category for estimating uncollectible accounts Marx’s estimates of bad debts are as shown below. Age of Accounts Estimated Percentage Uncollectible Current 3% 1–30 days past due 6% 31–90 days past due 30% Over 90 days past due 50% Prepare the adjusting entry at March 31, 2018, to record bad debts expense.
Marx Corporation has accounts receivable of $96,000 at March 31, 2018. An analysis of the accounts shows these amounts. Balance, March 31 Month of Sale 2018 2017 March (current) $65,900 $76,200 February (1 – 30 days past due) 12,900 7,900 December and January (31 – 90 days past due) 10,100 2,100 (over 90 days past due) 7,100 1,200 $96,000 $87,400 Credit terms are 2/10, n/30. At March 31, 2018, there is an unadjusted $2,300 credit balance in Allowance for Doubtful Accounts. The company uses the percentage of receivables by age category for estimating uncollectible accounts Marx’s estimates of bad debts are as shown below. Age of Accounts Estimated Percentage Uncollectible Current 3% 1–30 days past due 6% 31–90 days past due 30% Over 90 days past due 50% Prepare the adjusting entry at March 31, 2018, to record bad debts expense.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Marx Corporation has
| Balance, March 31 | |||||
| Month of Sale | 2018 | 2017 | |||
| March (current) | $65,900 | $76,200 | |||
| February (1 – 30 days past due) | 12,900 | 7,900 | |||
| December and January (31 – 90 days past due) | 10,100 | 2,100 | |||
| (over 90 days past due) | 7,100 | 1,200 | |||
| $96,000 | $87,400 |
Credit terms are 2/10, n/30. At March 31, 2018, there is an unadjusted $2,300 credit balance in Allowance for Doubtful Accounts. The company uses the percentage of receivables by age category for estimating uncollectible accounts Marx’s estimates of
| Age of Accounts | Estimated Percentage Uncollectible |
||
| Current | 3% | ||
| 1–30 days past due | 6% | ||
| 31–90 days past due | 30% | ||
| Over 90 days past due | 50% |
Prepare the
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