A company has the following unadjusted account balances at December 31, of the current year; Accounts Receivable of $185,700 and Allowance for Doubtful Accounts of $1,600 (credit balance). The company uses the aging of accounts receivable to estimate its bad debts. The following aging schedule reflects its accounts receivable at the current year-end:

Account Age	Balance	Estimated Uncollectible Percentage
Current (not yet due)	$96,000	1.0%
1-30 days past due	64,000	2.5%
30-60 days past due	16,000	11.0%
61-90 days past due	6,500	37.0%
Over 90 days past due	3,200	70.0%
Total	$185,700

1. Calculate the amount of the Allowance for Doubtful Accounts that should appear on the December 31, of the current year, balance sheet.

2. Prepare the adjusting journal entry to record bad debts expense for the current year.