E7.7 Determine bad debts expense, and prepare the adjusting entry. Marc Pty Ltd has accounts receivable of $92 500 at 31 March 2019. An analysis of the accounts shows these amounts: Balance, 31 March Month of sale 2019 2018 March $65 000 $75 000 February 12600 8000 December and January 8500 2400 November and October 6400 1100 $92 500 $86 500 Credit terms are 2/7, n/30. At 31 March 2019 there is a $1600 credit balance in allowance for doubtful debts before adjustment. The entity uses the ageing of accounts receivable basis for estimating uncollectable accounts. Marc Pty Ltd's estimates of bad debts are as follows: Age of accounts Estimate d percentage uncollectable Current 2.0% 1-30 days past due 5.0 31-90 days past due 30.0 Over 90 days 50.0 Required (a) Determine the total estimated uncollectables. (b) Prepare the adjusting entry at 31 March 2019 to record bad debts expense. (c) Discuss the implications of the changes in the ageing schedule from 2018 to 2019