Calculate the tentative balance in the allowance for bad debts at year end:
Allowance for Bad Debts		Dr.	Cr.	Balance
Jan. 1, 2020 balance
1% credit sales
Write offs
Restorations
Tentative balance, dec. 31, 2020
Adjustment
Balance
Bad debt Expense		Dr.	Cr.	Balance
1% credit sales
Adjustment
The balance in accounts receivable was $120,000. 30,0000 was over 60 days old and it was estimated that
40% would not be collected. The estimated loss on the remaining receivables was 1%.

Bad Debts
Credit sales (including sales tax) were $350,000 during 2020. An allowance for
bad debts was recorded at 1% of credit sales.
The beginning balance for the allowance for bad debts was $8,300,
During the year, write offs were $4,000, and there were $1,000 of accounts restored that had been written off.