Exercise - Oriole Company has accounts receivable of $92,000 at March 31, 2017. Credit terms are 2/10, n/30. At March 31, 2017, there is a $1,949 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.
|
Age of Accounts
|
Balance, March 31
|
Estimated
Percentage Uncollectible
|
|
2017
|
2016
|
|
Current
|
561,400
|
576,320
|
2%
|
|
1-30 days past due
|
13,800
|
8,280
|
5
|
|
31-90 days past due
|
9,900
|
2,170
|
28
|
|
Over 90 days past due
|
6,900
|
1,040
|
49
|
| |
$92,000
|
$87,810
|
|
Determine the total estimated uncollectibles.
Prepare the adjusting entry at March 31, 2017, to record bad debt expense.