Reference no: EM132642479

Question - Whispering Winds Corp. has accounts receivable of $93,600 at March 31, 2017. Credit terms are 2/10, n/30. At March 31, 2017, there is a $2,216 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 estimates of bad debts are as shown below.

Balance, March 31 Estimated Percentage Uncollectible

Age of Accounts 2017 2016

Current $63,800 $69,450 2%

1-30 days past due 12,200 7,740 5

31-90 days past due 10,000 2,630 29

Over 90 days past due 7,600 1,140 54

$93,600 $80,960

Required -

1. Determine the total estimated uncollectibles.

2. Prepare the adjusting entry at March 31, 2017, to record bad debt expense.