Question

Wildhorse Co. has accounts receivable of $92,100 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $2,081 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, March 31 Estimated Percentage Uncollectible Age of Accounts 2022 2021 Current $63,500 $80,330 2 % 1–30 days past due 11,700 7,610 5 31–90 days past due 10,300 2,480 31 Over 90 days past due 6,600 1,030 51 $92,100 $91,450 Incorrect answer. Your answer is incorrect. Try again. Determine the total estimated uncollectibles at March 31, 2022. Total estimated uncollectible =

Prepare the adjusting entry at March 31, 2022, to record bad debt expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
Enter an account title	Enter a debit amount	Enter a credit amount
Enter an account title	Enter a debit amount	Enter a credit amount

Answer 1

Credit Account Titles and Explanation Bad Debt Expenses Allowence for doubtful accounts Debit S 6,333 $ 6,333 Notes: Current accounst 1-30 Days past due 31-90 days past due Over 90 days Total Accounts Receivables Estimated percentage Uncollectable $ 63,500 2 S 11.700 5% $ 10,300 31 $ 6,600 51% S 92.100 Allowence for Doubt Ful accounts S 1,270 S 585 S 3,193 S 3,366 S 8,414 March 31,2022 Bad Debt expenses = $8.414-$2,081 = $6,333