1. The following information relates to Jaya Bhd.'s account receivable. RM Beginning balance - Account receivable 30,000 Beginning balance - Allowance for doubtful debts 2,500 Credit sales 150,000 Written- off receivables 1,600 Cash receipts from customers 145,000

At the end of the period, the company estimates bad debts will equal 10% of the year-end balance in accounts receivable.

Required:

Prepare the adjusting entry for bad debt.