Exercise 8-5

Sweet Acacia Industries has accounts receivable of $97,200 at March 31, 2017. Credit terms are 2/10, n/30. At March 31, 2017, there is a $1,891 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		$64,800		$79,610		2	%
130 days past due		13,800		7,710		5
3190 days past due		10,500		2,480		29
Over 90 days past due		8,100		1,170		47
		$97,200		$90,970

Determine the total estimated uncollectibles.

The total estimated uncollectibles

$Enter a dollar amount

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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