At the beginning of the year, Tennyson Auto Parts had an accounts receivable balance of $31,800 and a balance in allowance for doubtful accounts of $2,980 (credit). During the year, Tennyson had credit sales of $624,300, collected accounts receivable in the amount of $602, 700, wrote off $18,600 of accounts receivable, and had the following data for accounts receivable at the end of the period:

Accounts Receivable Age	Amount	Proportion Expected to Default
Current	$20,400	.01
1-15 days past due	5,300	.02
16-45 days past due	3,100	.08
46-90 days past due	3,600	.15
Over 90 Days past due	2,400	.30
	$34,800

P 5-86A

1.

Proportion

Accounts

Expected to

Allowance

Receivable Age

Amount

Default

Required

Current

115 days past due

1645 days past due

4690 days past due

Over 90 days past due

Totals

2.

The preadjustment balance in the allowance for doubtful accounts is a

Allowance for Doubtful Accounts

Preadjustment balance

3.

Bad debt expense is

Allowance for Doubtful Accounts

Preadjustment balance

4.

Journal

Date

Account and Explanation

Debit

Credit

(Record adjusting entry for bad debt expense

estimate)