Question: Determine bad debt expense, and prepare the adjusting entry E8.8 (LO 2), AP Godfreid Company has accounts receivable of $95,400 at March 31, 2025.

Determine bad debt expense, and prepare the adjusting entry E8.8 (LO 2), AP Godfreid Company has accounts receivable of $95,400 at March 31, 2025. Credit terms are 2/10, n/30. At March 31, 2025, there is a $2,100 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 Age of Accounts Current 2025 $65,000 $75,000 2024 Uncollectible 2% -30 days past duc 31-90 days past due Over 90 days past due 12,900 10,100 2,400 7,400 8,000 30 1,100 50 50 5 $95,400 $86,500 Instructions a. Determine the total estimated uncollectibles at March 31, 2025. b. Prepare the adjusting entry at March 31, 2025, to record bad debt expense. c. Discuss the implications of the changes in the aging schedule from 2024 to 2025

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