Question

Total 0 1 to 30 31 to 60 61 to 90 over 90

Answer 1

Answer:

a. $25,650

b. Journal entries

Explanation:

The computation is shown below:

a. The balance of the Allowance for Doubtful Accounts is

=  Total account receivable × estimated percentage

= $570,000 × 4.5%

= $25,650

b. The adjusting entry is as follows

Bad Debt Expense  $13,650       ($25,650 - $12,000)

         To Allowance for Doubtful Accounts $13,650

(Being the bad debt expense is recorded)

c. The adjusting entry is as follows

Bad Debt Expense  $26,650       ($25,650 + $1,000)

         To Allowance for Doubtful Accounts $26,650

(Being the bad debt expense is recorded)