Stine Company has accounts receivable of $95,400 at March 31, 2014. An analysis

Question

Stine Company has accounts receivable of $95,400 at March 31, 2014. An analysis of the accounts shows these amounts.

Balance, March 31 Month of Sale 2014 2013 March $65,000 $75,000 February 12,900 8,000 December and January 10,100 2,400 November and October 7,400 1,100 $95,400 $86,500

Credit terms are 2/10, n/30. At March 31, 2014, 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 Stine Company has accounts receivable of $95,400 at March 31, 2014. An analysis of the accounts shows these amounts.

Balance, March 31 Month of Sale 2014 2013 March $65,000 $75,000 February 12,900 8,000 December and January 10,100 2,400 November and October 7,400 1,100 $95,400 $86,500

Credit terms are 2/10, n/30. At March 31, 2014, 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 Stine Company has accounts receivable of $95,400 at March 31, 2014. An analysis of the accounts shows these amounts.

Balance, March 31 Month of Sale 2014 2013 March $65,000 $75,000 February 12,900 8,000 December and January 10,100 2,400 November and October 7,400 1,100 $95,400 $86,500

Credit terms are 2/10, n/30. At March 31, 2014, 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 Balance, March 31 Month of Sale 2014 2013 $65,000 $75,000 12,900 8,000 10,100 2,400 7,400 1,100 $95,400 $86,500 Stine Company has accounts receivable of $95,400 at March 31, 2014. An analysis of the accounts shows these amounts.

Balance, March 31 Month of Sale 2014 2013 March $65,000 $75,000 February 12,900 8,000 December and January 10,100 2,400 November and October 7,400 1,100 $95,400 $86,500

Credit terms are 2/10, n/30. At March 31, 2014, 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 Stine Company has accounts receivable of $95,400 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 $2,100 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.

Explanation / Answer

Total estimated uncollectible:

65000 x 2% + 12900 x 5% + 10100 x 30% + 7400 x 50% = $8,675

Adjusting entry

Dr Bad debt expense (8675 - 2100)   $6,575

Cr Allowance for doubtful account $6,575

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