Accounting for Receivables

Menge Company has accounts receivable of $93,100 at March 31. Credit terms are 2/10, n/30. At March 31, Allowance for Doubtful Accounts has a credit balance of $1,200 prior to adjustment. The company uses the percentage-of-receivables basis for estimating noncollectable accounts. The company's estimate of bad debts is shown below.


  1. Determine the total estimated uncollectibles
  2. Prepare the adjusting entry at March 31 to record bad debt expense.


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