Bad debt for Accounts Receivable: ThreeBrothers management does not expect there to be any change in the collectability of its credit sales related to its normal operations. ThreeBrothers uses the Accounts Receivable approach to estimate bad debts, and the aging schedule at 12/31/2017 is summarized below

Days outstanding % of AcctsRec Estimated % Uncollectible

0-30 days 40% 0.30%

30-60 days 35% 0.80%

60-90 days 15% 10.00%

>90 days 10% 25.00%

a. What is the year end adjusting entry to account for bad debts at the end of 2017?

(FYI, current Unadjusted trial balance shows allowance for bad debts as 20,000 at December 2017)

UPDATE: Accounts Recievable is at dr 22,500,000