The following is information related to the Accounts Receivable accounts of Gulistan AG during the current year 2022.

1. An aging schedule of the accounts receivable as of December 31, 2022, is as follows.

2. The Accounts Receivable account has a debit balance of €372,400 on December 31, 2022.

3. Two entries were made in the Bad Debt Expense account during the year:

(1) A debit on December 31 for the amount credited to Allowance for Doubtful Accounts, 

(2) A credit for €3,240 on November 3, 2022, and a debit to Allowance for Doubtful Accounts because of a bankruptcy.

4. Allowance for Doubtful Accounts is as follows for 2022.

5. A credit balance exists in Accounts Receivable (60–90 days) of €4,840, which represents an advance on a sales contract.

Instructions

Assuming that the books have not been closed for 2022, make the necessary correcting entries.

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Net Debit Balance Age % to Be Applied after Correction Is Made Under 60 €172,342 1% days 60-90 136,490 3% days 91-120 39.924 6% days 23,644 €3,700 definitely uncollectible; estimated remainder uncollectible is 25% Over 120 days €372,400 *The €3,240 write-off of receivables is related to the 91-to-120 day category.