Splish Company has accounts receivable of $113,300 at March 31, 2020. Credit terms are 2/10, n/30. At March 31, 2020, 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 estimate of bad debts is shown below. Age of Accounts Balance, March 31 Estimated Percentage Uncollectible 2020 2019 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 (a) Your answer has been saved. See score details after the due date. Determine the total estimated uncollectibles. Total estimated uncollectibles $enter the total estimated uncollectibles eTextbook and Media List of Accounts Attempts: 1 of 1 used (b) Prepare the adjusting entry at March 31, 2020, to record bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Mar. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount
Splish Company has accounts receivable of $113,300 at March 31, 2020. Credit terms are 2/10, n/30. At March 31, 2020, 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 estimate of bad debts is shown below. Age of Accounts Balance, March 31 Estimated Percentage Uncollectible 2020 2019 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 (a) Your answer has been saved. See score details after the due date. Determine the total estimated uncollectibles. Total estimated uncollectibles $enter the total estimated uncollectibles eTextbook and Media List of Accounts Attempts: 1 of 1 used (b) Prepare the adjusting entry at March 31, 2020, to record bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Mar. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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
Splish Company has accounts receivable of $113,300 at March 31, 2020. Credit terms are 2/10, n/30. At March 31, 2020, 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 estimate of bad debts is shown below.
|
Age of Accounts |
Balance,
March 31 |
Estimated Percentage
Uncollectible |
||||
|---|---|---|---|---|---|---|
| 2020 | 2019 | |||||
| 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 |
(a)
Your answer has been saved. See score details after the due date.
Determine the total estimated uncollectibles.
| Total estimated uncollectibles | $enter the total estimated uncollectibles |
eTextbook and Media
List of Accounts
Attempts: 1 of 1 used
(b)
Prepare the adjusting entry at March 31, 2020, to record bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
|
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
|---|---|---|---|
|
Mar. 31
|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
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