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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On 1 June 2020, Mason Ltd. had Accounts Receivable $424,778 and Allowance for Doubtful Debts accounts $6,050. Ignore GST. During June, the following transactions occurred: Revenue earned on credit, $597,500. Sales returns, $12,050. Accounts receivable collected, $700,000. Accounts written off as uncollectable, $5,926. Based on an ageing of accounts receivable on 30 June, the firm determined that the Allowance for Doubtful Debts account should have a credit balance of $6,750 on the balance sheet as at 30 June 2020. Ignore GST. Required: Prepare general journal entries to record the four transactions. Prepare journal entries to adjust the bad debts expense and allowance for doubtful debts account. Show how accounts receivable and the allowance for doubtful debts would appear on the balance sheet at 30 June 2020. On 10 July 2020, Kent Ltd, whose $1,300 account had been written off as uncollectable in June, paid its account in full. Prepare journal entries to record the…
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