Godfreid Company has accounts receivable of $95,400 at March 31, 2017. Credit terms are 2/10, n/30. At March 31, 2017, 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.
Balance, March 31
Age of Accounts 2017 2016 Estimate Percentage Uncollectible
Current $65,000 $75,000 2%
1-30 days past due 12,900 8,000 5
31-90 days past due 10,100 2,400 30
Over 90 days past due 7,400 1,100 50
$95,400 $86,500
Determine the total estimated uncollectibles.

[tex]\left[\begin{array}{cccc}$Age&2017&$Expected&$Total\\$Current&65000&0.02&1300\\$1-30 days&129000&0.05&6450\\$31-90 days&10100&0.3&3030\\$over 90 days&7400&0.5&3700\\$Total&&&14480\\\end{array}\right][/tex]

Current allowance: 2,100

Expected uncollectible amount: 14,480

adjusting entry: 14,480 - 2,100 = 12,380

Parrain Parrain · Answer 2 · 2021-12-28T14:32:29+01:00

The total estimated uncollectible amount based on the figures given is $8,675

To calculate the total estimated uncollectible, use the percentage uncollectible of those amounts and then add them all up.

As this is 2017, only the figures from 2017 are relevant:

= (65,000 x 2%) + (12,900 x 5%) + (10,100 x 30%) + (7,400 x 50%)

= 1,300 + 645 + 3,030 + 3,700

= $8,675

In conclusion, the total estimated uncollectible is $8,675

Find out more about uncollectibles at https://brainly.com/question/25779348.