Exercise 8-4 (Part Level Submission) Menge Company has accounts receivable of $93,100 at March 31. Balance, of Receivables $60,000 16 days Average Age Month of Sale March 31 Outstanding March February January Prior to January 7,000 110 days 17,600 8,500 48 days 73 days 93,100 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 shown below Age of Accounts 1-30 days 31-60 days 61-90 days Over 90 days Estimated Percentage Uncollectible 2.0% 5.0% 20.0% 50.0%