Dim Sum Foods has accounts receivable of $260,000 and the allowance for doubtful accounts has a credit

Question:

Dim Sum Foods has accounts receivable of $260,000 and the allowance for doubtful accounts has a credit balance of $6,000. Based on analyzing the aging of the accounts receivable, management determined that the appropriate ending balance in the allowance for doubtful accounts at year-end, December 31, should be $26,000.
a. Draw a T-account for the allowance for doubtful account and fill it in with all of the given information.
b. Determine the amount of bad debt expense that needs to be recorded.

c. Prepare the adjusting journal entry to record the estimated bad debts at year-end.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...