Answer:
$25,650
Journal entries
Explanation:
The computation and the journal entries are as follows
The estimated balance of the allowance for Doubtful Accounts is shown below:
= Total account receivable × estimated percentage
= $570,000 × 4.5%
= $25,650
The journal entry is shown below:
a. Bad debt expense A/c Dr $13,650 ($25,650 - $12,000)
To Allowance for doubtful debts $13,650
(Being bad debt expense is recorded)
b. Bad debt expense A/c Dr $24,650 ($25,650 + $1,000)
To Allowance for doubtful debts $24,650
(Being bad debt expense is recorded)
