Crane Company has accounts receivable of $96,600 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $2,287 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 PercentageUncollectible Age of Accounts 2022 2021 Current $65,600 $75,150 2 % 1–30 days past due 13,500 7,870 5 31–90 days past due 9,800 2,630 28 Over 90 days past due 7,700 1,140 47 $96,600 $86,790 Determine the total estimated uncollectibles at March 31, 2022. Total estimated uncollectibles $Enter a dollar amount Prepare the adjusting entry at March 31, 2022, to record bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 3CP: At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in...

See similar textbooks

Related questions

Concept explainers

Question

Crane Company has accounts receivable of $96,600 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $2,287 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 Uncollectible
Age of Accounts	2022	2021
Current	$65,600	$75,150	2	%
1–30 days past due	13,500	7,870	5
31–90 days past due	9,800	2,630	28
Over 90 days past due	7,700	1,140	47
	$96,600	$86,790

Determine the total estimated uncollectibles at March 31, 2022.

Total estimated uncollectibles

$Enter a dollar amount

Prepare the adjusting entry at March 31, 2022, to record bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
Enter an account title	Enter a debit amount	Enter a credit amount
Enter an account title	Enter a debit amount	Enter a credit amount

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions