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Balenciaga uses the aging of accounts receivable approach to estimate bad debt expense. On February 6th, 2007, an analysis of accounts receivable revealed the following:
Balenciaga uses the aging of accounts receivable approach to estimate bad debt expense. On February 6th, 2007, an analysis of accounts receivable revealed the following:
Not due: | 98,000 | 1% |
---|---|---|
1 to 30 | 27,000 | 4% |
Over 60 | 7,000 | 50% |
Given that the balance in the Allowance for doubtful accounts at the beginning of the year was a 5,000 debit, calculate the amount of the adjusting entry for Bad debts expense in February 6th.
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