Honey Co. has accounts receivable of $97,900 at April 31, 2023. Credit terms are 2/10, n/30. At April 31, 2023, there is a $1,951 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, April 31				Estimated Percentage Uncollectible
Age of Accounts		2023		2022
Current		$69,000		$80,200		2	%
1–30 days past due		12,000		7,260		5
31–90 days past due		9,900		2,500		28
Over 90 days past due		7,000		1,060		53
		$97,900		$91,020

1. Determine the total estimated uncollectibles at April 31, 2023.

2. Prepare the adjusting entry at April 31, 2023, to record bad debt expense.

Answer rating: 100% (QA)

1 Total estimated uncollectibles at April 31 2023 Total Accounts Receivable at April 31 2023 97900 E... View the full answer