Hachey Company has accounts receivable of $95,100 at March 31, 2014. An analysis of the accounts shows these amounts. Credit terms are 2/10, n/30. At March 31, 2014, there is a $2,500 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 estimates of bad debts are as shown below Instructions
(a) Determine the total estimated uncollectibles.
(b) Prepare the adjusting entry at March 31, 2014, to record bad debts expense.

Question

Hachey Company has accounts receivable of $95,100 at March 31, 2014. An analysis of the accounts shows these amounts.  Credit terms are 2/10, n/30. At March 31, 2014, there is a $2,500 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 estimates of bad debts are as shown below  Instructions
(a) Determine the total estimated uncollectibles.
(b) Prepare the adjusting entry at March 31, 2014, to record bad debts expense.

Quizplus · Accepted Answer

The Answer of Hachey Company has accounts receivable of $95,100 at March 31, 2014. An analysis of the accounts shows these amounts.  Credit terms are 2/10, n/30. At March 31, 2014, there is a $2,500 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 estimates of bad debts are as shown below  Instructions
(a) Determine the total estimated uncollectibles.
(b) Prepare the adjusting entry at March 31, 2014, to record bad debts expense.

Hachey Company Has Accounts Receivable of $95,100 at March 31