Exercise 8-5 Waterway Industries has accounts receivable of $98,600 at March 31, 2017. Credit terms are 2/10, n/30. At March 31, 2017, there is a $2,227 credit balance in Allowance

Exercise 8-5 Waterway Industries has accounts receivable of $98,600 at March 31, 2017. Credit terms are 2/10, n/30. At March 31, 2017, there is a $2,227 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 $68,400 $69,990 2 % 1–30 days past due 13,700 7,880 5 31–90 days past due 9,700 2,400 28 Over 90 days past due 6,800 1,100 49 $98,600 $81,370 Determine the total estimated uncollectibles. The total estimated uncollectibles $ Prepare the adjusting entry at March 31, 2017, to record bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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