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Month of Sale ary amber and January Balance, March 31 2024 $75,000 8,000 2025 $60,000 12,000 10,000 2,000

Month of Sale ary amber and January Balance, March 31 2024 $75,000 8,000 2025 $60,000 12,000 10,000 2,000

FINANCIAL ACCOUNTING
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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A6

Blossom Salon Supply Company has accounts receivable of $89.000 at March 31, 2025. An analysis of the accounts shows these amounts: Month of Sale March February December and January October and November Balance, March 31 2025 $60,000 $75,000 Age of Accounts Current 1-30 days past due 31-90 days past due Over 90 days past due 12,000 10,000 7,000 $89,000 2024 7 8,000 25 50 2,000 Credit terms are 2/10, n/30. At March 31, 2025, there is a $2.500 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 uncollectibles are as shown below: 1,000 $86,000 Estimated Percentage Uncollectible 2 %
Transcribed Image Text:Blossom Salon Supply Company has accounts receivable of $89.000 at March 31, 2025. An analysis of the accounts shows these amounts: Month of Sale March February December and January October and November Balance, March 31 2025 $60,000 $75,000 Age of Accounts Current 1-30 days past due 31-90 days past due Over 90 days past due 12,000 10,000 7,000 $89,000 2024 7 8,000 25 50 2,000 Credit terms are 2/10, n/30. At March 31, 2025, there is a $2.500 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 uncollectibles are as shown below: 1,000 $86,000 Estimated Percentage Uncollectible 2 %
(b) Prepare the adjusting entry at March 31, 2025, to record bad debt expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Mar. 31 Debit Credit
Transcribed Image Text:(b) Prepare the adjusting entry at March 31, 2025, to record bad debt expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Mar. 31 Debit Credit
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