BAD DEBT EXPENSE: AGING METHOD Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year.

Accounts Receivable Age Amount Proportion Expected to Default Allowance Required Current $310,500 0.004 $ 1,242 1–30 days past due 47,500 0.02 950 31–45 days past due 25,000 0.08 2,000 46–90 days past due 12,800 0.20 2,560 91–135 days past due 6,100 0.25 1,525 Over 135 days past due 4,200 0.60 2,520

$10,797 The balance in Glencoe’s allowance for doubtful accounts at the beginning of the year was $49,620 (credit). During the year, accounts in the total amount of $51,232 were written off.

Required:

. Determine bad debt expense.

. Prepare the journal entry to record bad debt expense.

Exercise