Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Amherst Auto Parts had an accounts receivable balance of \(\$ 31,800\) and a balance in the allowance for doubtful accounts of \(\$ 2,980\) (credit). During the year, Amherst had credit sales of \(\$ 624,300\), collected accounts receivable in the amount of \(\$ 602,700\), wrote off \(\$ 18,600\) of accounts receivable, and had the following data for accounts receivable at the end of the period:

Amherst has a December 31 year-end.
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1. Determine the desired postadjustment balance in allowance for doubtful accounts.
2. Determine the preadjustment balance in allowance for doubtful accounts before the bad debt expense adjusting entry is posted.
3. Compute bad debt expense.
4. Prepare the adjusting entry to record bad debt expense.
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Proportion Expected Accounts Receivable Age Amount to Default Current $20.400 0.01 1-15 days past due 5,300 0.02 16-45 days past due 3,100 0.08 46-90 days past due 3.600 0.15 Over 90 days past due 2,400 0.30 $34,800