Marc Pty Ltd has accounts receivable of $92,500 at 31 March 2016. An analysis of the accounts shows the following amounts. Credit terms are 2/7, n/30. At 31 March 2016 there is a $1,600 credit balance in allowance for doubtful debts before adjustment. The entity uses the ageing of accounts receivable basis for estimating uncollectable accounts. Mare Pty Ltd's estimates of bad debts are as follows. Credit terms are 2/7,n/30. At 31March2016 there is a $1,600 credit balance in allowance for doubtful debts before adjustment. The entity uses the ageing of accounts receivable basis for estimating uncollectable accounts. Marc Pty Ltd's estimates of bad debts are as follows