Godfreid Company has accounts receivable of $95,400 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022,

Question

Godfreid Company has accounts receivable of $95,400 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $2.100 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. Age of Accounts Balance, March 31 Estimated Percentage Uncollectible 2022 2021 Current $65.000 $75,000 2 % 1-30 days past due 12,900 8.000 5 31-90 days past due 10.100 2.400 30 Over 90 days past due 7,400 1.100 50 $95,400 $86,500 Determine the total estimated uncollectibles at March 31, 2022. Total estimated uncollectibles

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Computation of Total Estimated Uncollectibles at March 31, 2022: Age of Accounts Balance March 31, Percentage Estimated 2022 Uncollectible Bad Debts Current 65,000 2% 1300 1-30 days past due 12,900 5% 645 31-90 days past due 10,100 30% 3030 Over 90 days past due 7,400 50% 3700 Total 8675 So, Total Estimated Uncollectibles $8,675

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Godfreid Company has accounts receivable of $95,400 at March 31, 2022

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Archived Solution

Computation of Total Estimated Uncollectibles at March 31, 2022:

Age of Accounts	Balance March 31,	Percentage	Estimated
	2022	Uncollectible	Bad Debts
Current	65,000	2%	1300
1-30 days past due	12,900	5%	645
31-90 days past due	10,100	30%	3030
Over 90 days past due	7,400	50%	3700
Total			8675


So, Total Estimated Uncollectibles			$8,675