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.
Instructions
- Determine the total estimated uncollectibles
- Prepare the adjusting entry at March 31 to record bad debt expense.
Solution
