Min Yachts has accounts receivable of 95,400 at March 31, 2025 (amounts in thousands). Credit terms are 2/10, n/30. At March 31, 2025, there is a 2,100 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-ofreceivables basis for estimating uncollectible accounts. The company’s estimates of bad debts are as shown below.

Instructions

a. Determine the total estimated uncollectibles as of March 31, 2025.

b. Prepare the adjusting entry at March 31, 2025, to record bad debt expense.

c. Discuss the implications of the changes in the aging schedule from 2024 to 2025.

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Age of Accounts Balance, March 31 Estimated Percentage 2025 2024 Uncollectible Current W65,000 W75,000 2% 1-30 days 12,900 8,000 5 past due 31-90 days 10,100 2,400 30 past due Over 90 days 7,400 1,100 50 past due W95,400 W86,500