Prepare the adjusting entry at 31 March 2016 to record bad debts expense. (Enter debit entries first followed by credit entries. Credit account titles are automatically indented when the amount is enterec indent manually.) Marc Pty Ltd has accounts receivable of $92,500 at 31 March 2016 . An analysis of the accounts shows the following amounts. Credit termsare 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. Marc Pty Ltd's estimates of bad debts. are as follows