Answer:
bad debt expense 7,464 debit
allowance for doubtful accounts 7,464 credit
--to record year-end adjustment for bad debt expense--
allowance for doubtful accounts 3,171 debit
accounts receivables 3,171 credit
--to record write-off of a custoemr account--
Explanation:
We multiply each balance by their expected uncollectible amount:
Date // Amount // Expected // uncollectible
not due 127400 0.03 3,822
up to 30 90100 0.13 11,713
up to 60 54500 0.19 10,355
above 61 32700 0.33 10,791
Total 36,681
Allowance balance 29,217
Difference 36,681 - 29,217 = 7,464
The write-off will decrease both, account recievable and the allowance
Allowance for doubtful accounts
<u>Debit Credit</u>
36,681
3,171
Balance 33,510
