want detailed answer Prepare the adjusting entry at March 31, 2022, to record bad debt expense. (Credit account titles are automatically indented whenamount is entered. Do not indent manually.)DateAccount Titles and ExplanationMar. 31Bad Debt ExpenseAllowance for Doubtful AccountsDebitCreditSplish 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 basisfor estimating uncollectible accounts. The company's estimates of bad debts are as shown below.Age of AccountsBalance,March 31Estimated PercentageUncollectible20222021Current$76,100 $75,0002%1-30 days past due19,8008,0006%31-90 days past due9,6002,40025%Over 90 days past due7,8001,10051%$113,300$86,500

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Principles of Accounting Volume 1

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ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 5PA: The following accounts receivable information pertains to Luxury Cruises. A. Determine the estimated...

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want detailed answer

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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