Parry Co. Has accounts receivable of $95,400 at March 31, 2012. An analysis of the accounts below show these amounts.
Balance, March 31
Month of Sale 2012 2011
March $65,000 $75,000
Feb 12,900 8,000
Dec & Jan 10,100 2,400
Nov & Oct 7,400 1,100
Totals 95,400 86,500
Credit terms are 2/10, n30. At Mar. 31 2012 there is 2,100 credit balance in allowance for doubtful accounts prior to adjustment. The co. Uses the percentage of receivables basis for estimating uncollectible accounts. The co. Estimates of bad debts are shown below.
Age of accounts Estimated percentage uncollectible
Current 2%
1-30 days past due 5%
31-90 days past due 30%
Over 90 days 50%

Determine the total estimated uncollectibles
Prepare the adjusting entry at March 31, 2012 to record bad debts expense