Company B uses an aging schedule to estimate its uncollectible accounts. The aging of accounts receivable and the percentage of each category that is estimated to be uncollectible is:

i. Current $50,000 3%

ii. 1 - 30 days past due 25,000 8%

iii. 30-90 days past due 9,000 15%

iv. Over 90 days past due 20,000 60%

On December 31 2021 the Allowance for Doubtful Accounts, was credit 10,000.

Using the information above, calculate the bad debt expense using the aging of accounts receivable method. Make the adjusting journal entries and t-accounts.