Pharoah Salon Supply Company has accounts receivable of $103,900 at March 31, 2025. An analysis...
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Accounting
Pharoah Salon Supply Company has accounts receivable of $103,900 at March 31, 2025. An analysis of the accounts shows these amounts:
Balance, March 31
Month of Sale
2025
2024
March
$74,000
$75,900
February
12,200
8,600
December and January
10,600
2,800
October and November
7,100
1,500
$103,900
$88,800
Credit terms are 2/10, n/30. At March 31, 2025, there is a $4,100 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 uncollectibles are as shown below:
Age of Accounts
Estimated Percentage Uncollectible
Current
2
%
130 days past due
7
3190 days past due
25
Over 90 days past due
50
(a)
Determine the total estimated uncollectible accounts receivable at March 31, 2025.
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