Exercise 8-5 (Part Level Submission)

Windsor, Inc. has accounts receivable of $96,600 at March 31, 2017. Credit terms are 2/10, n/30. At March 31, 2017, there is a $2,287 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The companys estimates of bad debts are as shown below.

Balance, March 31 Estimated Percentage Uncollectible Age of Accounts 2017 2016 Current $65,600 $75,150 2 % 130 days past due 13,500 7,870 5 3190 days past due 9,800 2,630 28 Over 90 days past due 7,700 1,140 47 $96,600 $86,790

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(b)

Prepare the adjusting entry at March 31, 2017, to record bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation Debit Credit Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount