Menge Company has accounts receivable of $110,400 at March 31. An analysis of th

Question

Menge Company has accounts receivable of $110,400 at March 31. An analysis of the accounts shows the following information Credit terms are 2,10, m/30. At March 31. Allowance for Doubtful Accounts has a credit balance of $1,370 period to adjustment. The company used the percentage-of-receivable basic for estimating uncollectable accounts. The company's estimate of bad debts is shown below. Determine the total estimated uncollectable. Total estimated uncollectable $ Prepare the adjusting entry at March 31 to record bad debt expense. (Credit account titles are automatically indented when amount in entered. Do not indent manually.)

Explanation / Answer

Total estimated uncollectible = (69600*3%) + (23200*6%) + (9300*22%) + (8300*52%) = $9,842

Journal Entry:-

Allowance for Doubtful Debts.....Dr 11,212 (9842+13370)

To, Accounts Receivable 11,212

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