Answer Happy

Problem 3. Menge Company has accounts receivable of $ 93,100 on March 31. The company has Allowance for Doubtful Accounts with a credit balance of $1,200 prior to adjustment, and its estimate of bad debts is shown below Estimated Percentage Uncollectible Estimated Amount Uncollectible Age of Accounts Balance, March 31 1-30 days $ 60,000 2% 31-60 days $ 17,600 5% 61-90 days $ 8,500 20% Over 90 days $ 7,000 50% Total $ 93,100 Instructions: a) Determine the total estimate for uncollectible accounts receivable using the percentage-of-receivables method. Provide adjusting entries to record bad debt expense on March 31 (1 points) b) Determine the total estimate for uncollectible accounts receivable using the percentage-of-sales method and doubtful credit sales return percentage of 2%. Provide adjusting entries to record bad debt expense on March 31 (1 points) General Journal Account Name Debit Credit