Answer:
The answer is given below;
Explanation:
1. $100,000*.5%=$500
Bad Debt Expense Dr.$500
Allowance for Bad Debt Cr.$500
2. 1-30 days $75,000*10%=7,500
31-90 days $10,000*20%=2,000
More than 90 days $4,000*40%=1,600
Total Allowance for Doubtful Accounts-Closing=$11,100
3. Adjusting entry for December 31,2013
Opening Balance ($1,600)
Closing balance $11,100
Allowance for the year $9,500
Bad Debt Expense Dr.$9,500
Account Receivable Cr.$9,500
4. Allowance for Doubtful Accounts $11,100
