How do i find the amount of..?

Question

Hachey Company has accounts receivable of $94,130 at March 31, 2007. An analysis of the accounts shows these amounts.

Balance, March 31

Month of Sale 2007 2006

March $62,800 $75,000

February 12,750 8,000

December and January 10,800 2,400

November and October 7,780 1,100

$94,130 $86,500

Credit terms are 2/10, n/30. At March 31, 2007, there is a $2,200 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 follows. (Round all answers to 0 decimal places.)

Estimated Percentage

Age of Accounts Uncollectible

Current 3%

1-30 days past due 8

31-90 days past due 35

Over 90 days 53

Determine the total estimated uncollectibles

Answer 1

Current 3% x $62,800 = $1,884

1-30 days past due 8% x $12,750 = $13,859

31-90 days past due 35% x $10,800 = $ 3,780

Over 90 days 53% x $7,780 = $4,123

Total estimated uncollectibles $23,646 - Answer

Since there is already a credit in the allowance acct, the adjusting entry would be for $23,646 - $2,200 = $21,446