Question 5 Outback Company has Accounts receivable of $98,100 as at 31 March. An analysis of the accounts shows the following. Month of sale Balance 31 March March $65,000 February 17,600 January 8,500 Prior to January 7,000 $98,100 Credit terms are 2/10, n/30. As at 31 March Allowance for Doubtful debts has a credit balance of $1,200 prior to adjustment. The business uses the percentage of receivables basis for estimating uncollectable accounts. The business's estimate of doubtful debts is as follows. Age of accounts Estimated percentage uncollectable 1-30 days 2.0% 30-60 days 5.0% 60-90 days 30.0% Over 90 days 50.0% Required (a) Determine the total estimated uncollectables. Age of accounts Amount 1-30 days $65,000 30-60 days Estimated uncollectable % 2.0 $1,300 5.0 60-90 days 30.0 Over 90 days 50.0 $ (b) Prepare the adjusting entry as at 31 March to record bad debts expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Debit Credit Mar. 31