Prepare the adjusting entry at March 31 to record the credit losses for the period. (L titles are automatically indented when amount is entered. Do not indent manually. If no er titles and enter O for the amounts.)
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
![(b)
Your answer is partially correct.
Prepare the adjusting entry at March 31 to record the credit losses for the period. (List debit entry before credit entry. Credit account
titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account
titles and enter o for the amounts.)
Date Account Titles and Explanation
Mar. 31
Credit Losses
Allowance for Expected Credit Losses
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd8c28153-e825-4c56-864b-d7c0a22d6c1c%2Fe09ee8fb-03b0-4d95-b5dd-6bbbddcf68a9%2Fdjini4_processed.png&w=3840&q=75)
![Sipacore Ltd. has an Accounts Receivable amount of $363,700 and an unadjusted credit balance in Allowance for Expected Credit
Losses of $8,600 at March 31. The company's accounts receivable and percentage estimates of uncollectible accounts are as follows:
Number of Days
Outstanding
(a)
0-30
31-60
61-90
Over 90
Total
Your answer is correct.
Age of Accounts
0-30 days
31-60 days
Accounts Receivable
$258,000
45,800
61-90 days
Over 90 days
32,600
Amount
27,300
$363,700
Prepare an aging schedule to determine the total estimated uncollectibles at March 31.
%
$258,000 2%
45,800 10%
32,600 30%
Estimated Percentage
Uncollectible
27,300 50%
2%
10%
30%
50%
Estimated Uncollectible
5160
4580
9780
13650
33170](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd8c28153-e825-4c56-864b-d7c0a22d6c1c%2Fe09ee8fb-03b0-4d95-b5dd-6bbbddcf68a9%2F8zhxrt8_processed.png&w=3840&q=75)
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