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.) Date Account Titles and Explanation Mar. 31 Bad Debt Expense Allowance for Doubtful Accounts Debit Credit Splish Company has accounts receivable of $113,300 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $1,500 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 bad debts are as shown below. Age of Accounts Balance, March 31 Estimated Percentage Uncollectible 2022 2021 Current $76,100 $75,000 2% 1-30 days past due 19,800 8,000 6% 31-90 days past due 9,600 2,400 25% Over 90 days past due 7,800 1,100 51% $113,300 $86,500
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.) Date Account Titles and Explanation Mar. 31 Bad Debt Expense Allowance for Doubtful Accounts Debit Credit Splish Company has accounts receivable of $113,300 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $1,500 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 bad debts are as shown below. Age of Accounts Balance, March 31 Estimated Percentage Uncollectible 2022 2021 Current $76,100 $75,000 2% 1-30 days past due 19,800 8,000 6% 31-90 days past due 9,600 2,400 25% Over 90 days past due 7,800 1,100 51% $113,300 $86,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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.)
Date
Account Titles and Explanation
Mar. 31
Bad Debt Expense
Allowance for Doubtful Accounts
Debit
Credit
Splish Company has accounts receivable of $113,300 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a
$1,500 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 bad debts are as shown below.
Age of Accounts
Balance,
March 31
Estimated Percentage
Uncollectible
2022
2021
Current
$76,100 $75,000
2%
1-30 days past due
19,800
8,000
6%
31-90 days past due
9,600
2,400
25%
Over 90 days past due
7,800
1,100
51%
$113,300
$86,500
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