Exercise 9-06 a-b

Windsor Company has accounts receivable of $106,100 at March 31, 2020. Credit terms are 2/10, n/30. At March 31, 2020, there is a $1,500 credit balance in Allowance for Doubtful Accounts 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		Balance, March 31				Estimated Percentage Uncollectible
		2020		2019
Current		$68,300		$75,000		3%
130 days past due		21,200		8,000		5%
3190 days past due		9,300		2,400		22%
Over 90 days past due		7,300		1,100		50%
		$106,100		$86,500

Determine the total estimated uncollectibles.

Total estimated uncollectibles

$

Prepare the adjusting entry at March 31, 2020, to record bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Mar. 31