Grevina Company has accounts receivable of \(\$ 92,500\) at March 31. An analysis of the accounts shows the following:

Credit terms are \(2 / 10, n / 30\). At March 31, there is a \(\$ 1,600\) 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 are as follows:

\section*{Instructions}

(a) Determine the total estimated uncollectibles.

(b) Prepare the adjusting entry at March 31 to record bad debts expense.

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Month of Sale Balance, March 31 March February December and January November and October $65,000 12,600 8,500 6,400 $92,500