Questions: Crane Company has accounts receivable of 98,600 at March 31, 2025. Credit terms are 2/10, n / 30. At March 31, 2025, there is a 2,200 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. Age of Accounts Balance, March 31 2025 Balance, March 31 2024 Estimated Percentage Uncollectible ------------ Current 68,400 69,990 2% 1-30 days past due 13,700 7,880 5% 31-90 days past due 9,700 2,400 28% Over 90 days past due 6,800 1,100 49% 98,600 81,370 · Determine the total estimated uncollectibles at March 31, 2025. Total estimated uncollectibles

Crane Company has accounts receivable of 98,600 at March 31, 2025. Credit terms are 2/10, n / 30. At March 31, 2025, there is a 2,200 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. Age of Accounts Balance, March 31 2025 Balance, March 31 2024 Estimated Percentage Uncollectible ------------ Current 68,400 69,990 2% 1-30 days past due 13,700 7,880 5% 31-90 days past due 9,700 2,400 28% Over 90 days past due 6,800 1,100 49% 98,600 81,370 · Determine the total estimated uncollectibles at March 31, 2025. Total estimated uncollectibles
Transcript text: Ch 8: WileyPlus Homework Question 3 of 10 $-/ 4$ View Policies Current Attempt in Progress Crane Company has accounts receivable of $\$ 98,600$ at March 31, 2025. Credit terms are 2/10, $\mathrm{n} / 30$. At March 31, 2025, there is a $\$ 2,200$ 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. \begin{tabular}{|c|c|c|c|} \hline \multirow[b]{2}{*}{Age of Accounts} & \multicolumn{2}{|l|}{Balance, March 31} & \multirow[b]{2}{*}{Estimated Percentage Uncollectible} \\ \hline & 2025 & 2024 & \\ \hline Current & \$68,400 & \$69,990 & 2 \% \\ \hline 1-30 days past due & 13,700 & 7,880 & 5 \\ \hline $31-90$ days past due & 9,700 & 2,400 & 28 \\ \hline Over 90 days past due & 6,800 & 1,100 & 49 \\ \hline & \$98,600 & \$81,370 & $\cdot$ \\ \hline \end{tabular} Determine the total estimated uncollectibles at March 31, 2025. Total estimated uncollectibles \$ $\square$ eTextbook and Media List of Accounts
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Solution

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Solution Steps

To determine the total estimated uncollectibles at March 31, 2025, we will calculate the uncollectible amount for each age category of accounts receivable by multiplying the balance in each category by the estimated percentage uncollectible. Then, we will sum these amounts to get the total estimated uncollectibles.

Step 1: Calculate Estimated Uncollectibles for Each Age Category

We calculate the estimated uncollectibles for each age category using the formula:

\[ \text{Estimated Uncollectibles} = \text{Balance} \times \text{Estimated Percentage Uncollectible} \]

For each category, we have:

  • Current: \[ 68400 \times 0.02 = 1368.0 \]

  • 1-30 days past due: \[ 13700 \times 0.05 = 685.0 \]

  • 31-90 days past due: \[ 9700 \times 0.28 = 2716.0 \]

  • Over 90 days past due: \[ 6800 \times 0.49 = 3332.0 \]

Step 2: Sum the Estimated Uncollectibles

Next, we sum the estimated uncollectibles from all categories to find the total:

\[ \text{Total Estimated Uncollectibles} = 1368.0 + 685.0 + 2716.0 + 3332.0 = 8101.0 \]

Final Answer

The total estimated uncollectibles at March 31, 2025, is

\[ \boxed{8101.0} \]

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