Godfreid Company has 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.
Instructions
a. Determine the total estimated uncollectibles at March 31, 2022.
b. Prepare the adjusting entry at March 31, 2022, to record bad debt expense.
c. Discuss the implications of the changes in the from 2021 to 2022.
