Leland Company has accounts receivable of $98,100 at March 31. An analysis of the accounts shows the following.

Credit terms are 2/10. n/30. At March 31, Allowance for Doubtful Accounts has a credit balance of $1,200 prior to adjustment. The company uses the percentage of receivables basis for estimating uncollectible accounts. The company's estimate of bad debts is as follows.

Instructions

(a) Determine the total estimated uncollectibles.

(b) Prepare the adjusting entry at March 31 to record bad debts expense.

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Month of Sale Balance, March 31 March $65,000 February 17.600 January 8.500 Prior to January 7,000 $98,100