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4. company had an accounts receivable balance of $76,500 and a credit balance in the allowance for the end of 2018: Sam's Auto Parts uses

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4. company had an accounts receivable balance of $76,500 and a credit balance in the allowance for the end of 2018: Sam's Auto Parts uses the aging method to estimate bad debt expense. At the end of 2018, the doubtfiul accounts of $8, 380. The company had the following analysis of accounts receivable af Accounts Receivable AgeAmount Proportion Current 1-15 days past due 16-45 days past due 46-90 days past due Over 90 days past due $40,000 11,500 3,100 4,600 17,300 $75,500 Expected to Default 2% 3% 7% 15% 25% Sam's Auto Parts has a December 31 year end. Required: 1. Calculate the desired ending balance of the allowance for doubtful accounts at the end of the year. (4 marks) 2. Prepare the journal entry to record bad debt expense at year end. (4 marks)

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