Assume that you are a staff accountant at Raymond Company. One of your responsibilities is to make the adjusting entry to record the bad debt expense at the end of the accounting period. The accounts receivable clerk informs you that 115 customers have outstanding balances as of December 31, 2018. The clerk provides you with the following aging schedule. You confirm that the total on the clerk's report balances to the general ledger balance for Accounts Receivable. Age Category Amount Not yet due $161,000 1 to 30 days past due 29,900 31 to 60 days past due 18,400 61 to 90 days past due 11,500 91 to 120 days past due 6,900 Over 120 days past due 2,300 Total Accounts Receivable $230,000 You have reviewed the collections history of the company and determined that the following percentages of each age category have become uncollectible in the past. There have been no significant changes to collections or the company's credit policy, so you assume that the trend will continue. Complete the following table to determine the amount estimated to become uncollectible. If required, round to the nearest dollar. Estimated % Amount to Become to Become Uncollectible Uncollectible 4% 10% 16% Age Category Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due 91 to 120 days past due Over 120 days past due Total 22% 44% 58% Over 120 days past due 58% Total What is the desired ending balance for Allowance for Doubtful Accounts? $ What is the net realizable value of Accounts Receivable? $ APPLY THE CONCEPTS: Prepare the adjusting entry for bad debt expense Use the following T-accounts to prepare the adjusting entry required at the end of the year to record the expense for bad debt. If required, round your answers to the nearest dollar. For those boxes in which no entry is required, leave the box blank. Bal 300 Bal Use the selection lists to indicate the effect of the transaction recorded in each T-account has on the accounting equation and on which financial statement the account is reported. Shareholders' Assets = Liabilities + Appears on: Assets = Liabilities + Equity Equity Shareholders Appears on: As it becomes clear that a customer is unable to pay the amount it owes to the company, the customer's balance should be written off. As customer account balances are written off, the balance in Allowance for Doubtful Accounts decreases. What if the sum of the customer's balances that are written off exceeds the credit balance in the account? This will result in a balance in Allowance for Doubtful Accounts. Assume this is the case for Raymond Company. The balance in Allowance for Doubtful Accounts is a debit balance of $300. The estimate of the amount expected to become uncollectible is the same. Under this scenario, what would be the amount of the adjusting entry? $