Reference no: EM131783656

Question - Ingles Company has accounts receivable of $99,700 at March 31. An analysis of the accounts shows the following.

Month of Sale Balance, March 31

March $77,900

February 23,000

January 8,900

Prior to January 8,000

$117,800

Credit terms are 2/10, n/30. At March 31, Allowance for Doubtful Accounts has a credit balance of $1,300 prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimate of bad debts is as follows.

Age of Accounts Estimated Percentage Uncollectible

1-30 days 3.0%

31-60 days 6.0%

61-90 days 31.0%

Over 90 days 51.0%

Required -

Determine the total estimated uncollectibles.

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