1. At the end of the current year, using the aging of receivable method, the accounts receivable balances totaled $586,750. Management estimated that $15,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $375.

Using the attached T-account template (or prepare an equation presentation):

1. document the accounts receivable and allowance for doubtful accounts balances, labeling them BAL
2. prepare the entry to recognize the estimated bad debt expense
3. document the ending balance in the T-accounts (or in the proper column, if using the equation presentation) for the following accounts:

• Accounts Receivable
• Allowance for Doubtful Accounts