At the beginning of the year, Penman Company had the following account balances.

Accounts receivable ........................ $356,000

Allowance for uncollectible accounts ........... 21,400

During the year, Penman's credit sales were $2,008,000, and collections on accounts receivable were $1,963,000. The following additional transactions occurred during the year.

Feb. 17 Wrote off Bava's account, $8,200.

May 28 Wrote off Reed's account, $4,800.

Dec. 15 Wrote off Fischer's account, $2,300.

Dec. 31 Recorded the bad debts expense assuming Penman's policy is to record bad debts expense as 1% of credit sales. (Hint: The allowance account is increased by 1% of credit sales regardless of write-offs.)

Instructions:

1.Compute the ending balances in accounts receivable and the allowance for uncollectible accounts.

2.Make the journal entry to record bad debt expense on Dec. 31

My answer regarding Q2 is

bad debts expense 20080 =1 % of $2,008,000

ADA 20080

but I am not 100% sure anyone can clarify? Thanks