E7.7 Determine bad debts expense, and prepare the adjusting entry. Craig Pty Ltd has accounts receivable of $46 250 at 31 March 2023. An analysis of the accounts shows these amounts Balance, 31 March Month of sale March February December and January November and October 2023 $32 500 2022 $37 500 6300 4000 4250 1200 3200 550 $46 250 $43 250 LO Credit terms are 2/7, n/30. At 31 March 2023 there is a $800 credit balance in allowance for doubtful debts before adjustment. The entity uses the ageing of accounts receivable basis for estimating uncollectable accounts. Craig Pty Ltd's estimates of bad debts are as follows. Estimated Required Age of accounts Current 1-30 days past due 31-90 days past due Over 90 days (a) Determine the total estimated uncollectables. (b) Prepare the adjusting entry at 31 March 2023 to record bad debts expense. percentage uncollectable 2.0% 5.0 30.0 50.0 (c) Discuss the implications of the changes in the ageing schedule from 2022 to 2023: LOB