Roy Company has accounts receivable of $97,500 at March 31. An analysis of the accounts shows the following: Credit terms are n/30. At March 31, Allowance fo Doubtful Accounts has a credit balance of $1,800, prior to adjustment. The company uses the percentage of receivables basis to estimate uncollectible accounts. company's percentage estimates of bad debts are as follows:

 Determine the total estimated uncollecbles. Prepare the adjusting entry at March 31 to record bad debits expense. Show your thinking in particulars.

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Account Age 0-30 days past due 31-60 days past due 61-90 days past due Over 90 days past due Age Group Balance 65,000 17,600 8,500 6,400 Estimated Uncollectible Percentage 29 10% 30% 50% $1,300 $1,760 $2,550 $3,200 Account Age 0-30 days past due 31-60 days past due 61-90 days past due Over 90 days past due Age Group Balance 65,000 17,600 8,500 6,400 Estimated Uncollectible Percentage 29 10% 30% 50% $1,300 $1,760 $2,550 $3,200

Answer rating: 100% (QA)

Calculate the estimated uncollectible amount for each age group 03... View the full answer