D E F G 1 K J A B E6-13 Complete the schedule below by filling in the green-shaded cells. An asterisk () will appear before an incorrect amount entered in the answer cells Descriptions will not be graded. IASTER COMPAN ation of Allowance for Doubtful A ecember 31, 201 Balance at January 1, 2019 . Balance at December 31, 2019 3 1 5 3 3 Problem 13E Chapter CH6 V Problem 13E V Receivables-Bad Debts At January 1, 2016, the credit balance in Master Company's Allowance for Doubtful Accounts was $400,000. For 2016, the provision for doubtful accounts is based on a percentage of credit sales. Credit sales for 2016 were $50,000,000 (assume that all of Master's sales are credit sales). Based on the latest available facts, the 2016 provision for doubtful accounts is estimated to be 0.7% of credit sales. During 2016, uncollectible receivables amounting to S410,000 were written off against the allowance for doubtful accounts. Required: Prepare a schedule computing the balance in Master's Allowance for Doubtful Accounts at December 31, 2016. Show supporting computations in good form. Step-by-step solution Step 1 of 4 Bad Debt Expense Since the revenues should match the expenses of a particular period of time, the bad debts are recorded as expenses that match with the revenues of that period. Such bad debts recognized are referred to as bad debt expense