Novak Corp. has accounts receivable of $111,000 at March 31, 2022. An analysis of the accounts shows these amounts. Balance, March 31 Month of Sale 2022 2021 March $61,000 $81,000 February 13,300 8,300 December and January 11,300 2,700 November and October 7,200 1,400 $92,800 $93,400 Credit terms are 2/10, n/30. At March 31, 2022, there is a $3,700 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 Estimated PercentageUncollectible Current 2 % 1–30 days past due 7 31–90 days past due 25 Over 90 days past due 50 Determine the total estimated uncollectible accounts receivable. Total estimated uncollectibles accounts receivable $Enter the total estimated uncollectibles in dollars Prepare the adjusting entry at March 31, 2022, to record bad debts expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Mar. 31 Enter an account title to record bad debt expense on March 31 Enter a debit amount Enter a credit amount Enter an account title to record bad debt expense on March 31 Enter a debit amount Enter a credit amount

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Novak Corp. has accounts receivable of $111,000 at March 31, 2022. An analysis of the accounts shows these amounts.

	Balance, March 31
Month of Sale	2022	2021
March	$61,000	$81,000
February	13,300	8,300
December and January	11,300	2,700
November and October	7,200	1,400
	$92,800	$93,400

Credit terms are 2/10, n/30. At March 31, 2022, there is a $3,700 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	Estimated Percentage Uncollectible
Current	2	%
1–30 days past due	7
31–90 days past due	25
Over 90 days past due	50

Determine the total estimated uncollectible accounts receivable.

Total estimated uncollectibles accounts receivable

$Enter the total estimated uncollectibles in dollars

Prepare the adjusting entry at March 31, 2022, to record bad debts expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Mar. 31	Enter an account title to record bad debt expense on March 31	Enter a debit amount	Enter a credit amount
	Enter an account title to record bad debt expense on March 31	Enter a debit amount	Enter a credit amount

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 5 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions