Gemini Ltd. has an Accounts Receivable amount of $370,000 and an unadjusted credit balance in the Allowance
Question:
Gemini Ltd. has an Accounts Receivable amount of $370,000 and an unadjusted credit balance in the Allowance for Doubtful Accounts of $8,800 as of March 31. The company's accounts receivable and the percentage estimates of its uncollectible accounts are as follows:
Number of days 0-30 31-60 61-90 Over 90
Accounts receivable outstanding $260,000 50,400 34,000 25,600
Estimated percentage uncollectible 2% 10% 30% 50%
Instructions
(a) Prepare an aging schedule to determine the estimated total uncollectibles as of March 31.
(b) Prepare the adjusting entry as of March 31 to record the expense for bad debts.
(c) What is the carrying amount of accounts receivable as of March 31?
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella