A company has the following unadjusted account balances at December 31, of the current year: Accounts Receivable of $185,700 and Allowance for Doubtful Accounts of $1,600 (credit balance). This company uses the aging of accounts receivable to estimate its bad debts. The following aging schedule reflects its accounts receivable at the current year-end:
a. Calculate the amount of the allowance for doubtful accounts that should appear on the December 31 of the current year balance sheet.
b Prepare the adjusting journal entry to record bad debts expense for the current year.

Question

A company has the following unadjusted account balances at December 31, of the current year: Accounts Receivable of $185,700 and Allowance for Doubtful Accounts of $1,600 (credit balance). This company uses the aging of accounts receivable to estimate its bad debts. The following aging schedule reflects its accounts receivable at the current year-end:
  a. Calculate the amount of the allowance for doubtful accounts that should appear on the December 31 of the current year balance sheet.
b Prepare the adjusting journal entry to record bad debts expense for the current year.

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The Answer of A company has the following unadjusted account balances at December 31, of the current year: Accounts Receivable of $185,700 and Allowance for Doubtful Accounts of $1,600 (credit balance). This company uses the aging of accounts receivable to estimate its bad debts. The following aging schedule reflects its accounts receivable at the current year-end:
  a. Calculate the amount of the allowance for doubtful accounts that should appear on the December 31 of the current year balance sheet.
b Prepare the adjusting journal entry to record bad debts expense for the current year.

A Company Has the Following Unadjusted Account Balances at December