before the estimate was made

QUESTION 1 The schedule of aging accounts for a Company, at the end of the year 2020, appears below: Current 1-30 days overdue 31-60 days overdue More than 60 days overdue Total Accounts Receivable $40,000 4,000 5,500 2.000 51.500 Estimate % of Bad Debts 2% 7% 15% 22% The allowance was estimated by using the schedule of ageing accounts. The allowance account had a debit balance of $800, before Required: Prepare the adjusting entry to record bad debts expense for 2020. (SHOW YOUR CALCULATIONS) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BI V S Paragraph Arial 10pt I. X XG TTC + Pes TT 9 12 A E V V 1