Problem
Blossom company has accounts receivable of $98700 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $2045 credit balance in Allowance for Doubtful accounts prior to adjustment. The company uses the percentage of receivables basis for estimating uncollectible accounts. The company estimates of uncollectibles are as shown below.
Balance, March 31
Age of Accounts 2022 2021 Estimated Percentage Uncollectible
Current $68,400 $70,460 2%
1-30 days past due 412,900 $8,130 5%
31-90 days past due 9,200 2,330 30%
Over 90 days past due 8,200 1,180 50%
Total $98,700 $82,100
Task
1) Determine the total estimated uncollectibles at March 31, 2022
2) Prepare the adjusting entry March 31, 2022, to record bad debt expense.