Eimraan Ltd. has accounts receivable of 98,100 at March 31. At March 31, Allowance for Doubtful...

  

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Eimraan Ltd. has accounts receivable of £98,100 at March 31. At March 31, Allowance for Doubtful Accounts has a credit balance of £900 prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimate of bad debts is as below: Age of Accounts AR Balance, March 31 Estimated % Uncollectible 1-30 days £65,000 2.0% 31-60 days 17,600 5.0% 61-90 days 8,500 30.0% Over 90 days 7,000 50.0% £98,100 Required: (a) Determine the total estimated uncollectible. (b) Prepare the adjusting entry at March 31 to record bad debt expense under allowance method. Eimraan Ltd. has accounts receivable of £98,100 at March 31. At March 31, Allowance for Doubtful Accounts has a credit balance of £900 prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimate of bad debts is as below: Age of Accounts AR Balance, March 31 Estimated % Uncollectible 1-30 days £65,000 2.0% 31-60 days 17,600 5.0% 61-90 days 8,500 30.0% Over 90 days 7,000 50.0% £98,100 Required: (a) Determine the total estimated uncollectible. (b) Prepare the adjusting entry at March 31 to record bad debt expense under allowance method.

Answer rating: 100% (QA)

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