Question

Exercise 9-06 a-b Windsor Company has accounts receivable of $106,100 at March 31, 2020. Credit terms...

Exercise 9-06 a-b

Windsor Company has accounts receivable of $106,100 at March 31, 2020. Credit terms are 2/10, n/30. At March 31, 2020, there is a $1,500 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 estimate of bad debts is shown below.


Age of Accounts

Balance,
March 31

Estimated Percentage
Uncollectible

2020 2019
Current $68,300 $75,000 3%
1–30 days past due 21,200 8,000 5%
31–90 days past due 9,300 2,400 22%
Over 90 days past due 7,300 1,100 50%
$106,100 $86,500
Determine the total estimated uncollectibles.
Total estimated uncollectibles $
Prepare the adjusting entry at March 31, 2020, to record bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Mar. 31

Homework Answers

Answer #1
Age of Accounts March 31,2020 Estimated % Uncollectible Estimated amount Uncollectible
Current 68300 3% 2049
1–30 days past due 21200 5% 1060
31–90 days past due 9300 22% 2046
Over 90 days past due 7300 50% 3650
Total 106100 8805
Total estimated uncollectibles 8805
Account Titles and Explanation Debit Credit
Bad debt expense 7305 =8805-1500
    Allowance for Doubtful Accounts 7305
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