Hachey Company Has Accounts Receivable of $95,100 at March 31

question 247

Essay

Hachey Company has accounts receivable of $95,100 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 $2,500 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.
(b) Prepare the adjusting entry at March 31, 2014, to record bad debts expense.

---

Definitions:

High Standards

The expectations or benchmarks of excellence in performance, behavior, or ethics that an organization or individual aspires to meet.

Ethical Leaders

Individuals who lead by example, demonstrate integrity in decision-making, and inspire ethical behavior in others within an organization.

Passion

A strong, intense emotion or enthusiasm for something, often driving motivation and commitment towards a particular activity or goal.

Adequate Compensation

Fair and sufficient remuneration or payment to employees for their work, often considered in terms of meeting their basic needs and recognizing their contributions.