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Dim Sum Foods has accounts receivable of $260,000 and the allowance for doubtful accounts has a credit balance of $6,000. Based on analyzing the aging

Dim Sum Foods has accounts receivable of $260,000 and the allowance for doubtful accounts has a credit balance of $6,000. Based on analyzing the aging of the accounts receivable, management determined that the appropriate ending balance in the allowance for doubtful accounts at year-end, December 31, should be $26,000.

a. Draw a T-account for the allowance for doubtful accounts and fill it in with all of the given information.

b. Determine the amount of bad debt expense that needs to be recorded.

c. Prepare the adjusting journal entry to record the estimated bad debts at year-end.

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