Stine Company has accounts receivable of $103,800 at March 31, 2014. An analysis of the accounts shows these amounts. Balance, March 31: Month of Sale 2014 2013 March $71,000 $73,000 February 13,900 8,200 December and January 10,600 3,000 November and October 8,300 1,500 $103,800 $85,700 Credit terms are 3/10, n/30. At March 31, 2014, there is a $3,300 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 Current 1-30 days past due Estimated Percentage Uncollectible 3% 5 31-90 days past due 33 Over 90 days past due 52 Determine the total estimated uncollectibles. Prepare the adjusting entry at March 31, 2014, to record bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Stine Company has accounts receivable of $103,800 at March 31, 2014. An analysis of the accounts shows these amounts. Balance, March 31: Month of Sale 2014 2013 March $71,000 $73,000 February 13,900 8,200 December and January 10,600 3,000 November and October 8,300 1,500 $103,800 $85,700 Credit terms are 3/10, n/30. At March 31, 2014, there is a $3,300 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 Current 1-30 days past due Estimated Percentage Uncollectible 3% 5 31-90 days past due 33 Over 90 days past due 52 Determine the total estimated uncollectibles. Prepare the adjusting entry at March 31, 2014, to record bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Stine Company has accounts receivable of $103,800 at March 31, 2014. An analysis of the
accounts shows these amounts. Balance, March 31:
Month of Sale
2014
2013
March
$71,000 $73,000
February
13,900 8,200
December and January 10,600
3,000
November and October 8,300 1,500
$103,800 $85,700
Credit terms are 3/10, n/30. At March 31, 2014, there is a $3,300 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
Current
1-30 days past due
Estimated Percentage Uncollectible
3%
5
31-90 days past due 33
Over 90 days past due 52
Determine the total estimated uncollectibles. Prepare the adjusting entry at March 31, 2014,
to record bad debt expense. (Credit account titles are automatically indented when amount is
entered. Do not indent manually.)
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