Sandhill Company has accounts receivable of $96,500 at March 31, 2025. Credit terms are 2/10, n/30. At March 31, 2025, there is a $2,200 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. Balance, March 31 Estimated Percentage Age of Accounts 2025 2024 Uncollectible Current $66,000 $79,900 1-30 days past due 13,000 7,930 31-90 days past due 10,600 2,540 33 Over 90 days past due 6,900 1,060 54 2535 2 % $96,500 $91,430 (a) Determine the total estimated uncollectibles at March 31, 2025. Total estimated uncollectibles $

Sandhill Company has accounts receivable of $96,500 at March 31, 2025. Credit terms are 2/10, n/30. At March 31, 2025, there is a $2,200 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. Balance, March 31 Estimated Percentage Age of Accounts 2025 2024 Uncollectible Current $66,000 $79,900 1-30 days past due 13,000 7,930 31-90 days past due 10,600 2,540 33 Over 90 days past due 6,900 1,060 54 2535 2 % $96,500 $91,430 (a) Determine the total estimated uncollectibles at March 31, 2025. Total estimated uncollectibles $

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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Concept explainers

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.

Question

Sandhill Company has accounts receivable of $96,500 at March 31, 2025. Credit terms are 2/10, n/30. At March 31, 2025, there is a
$2,200 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.
Balance, March 31
Estimated Percentage
Age of Accounts
2025
2024
Uncollectible
Current
$66,000
$79,900
2 %
1-30 days past due
13,000
7,930
5
31-90 days past due
10,600
2,540
33
Over 90 days past due
6,900
1,060
54
$96,500
$91,430
(a)
Determine the total estimated uncollectibles at March 31, 2025.
Total estimated uncollectibles $
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