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No journals entry required

Account receivable

Administrative expense

Allowance for doubtful accounts

Bad debt expense

Bank service charge expense

Cash

Cost of goods sold

Income tax expense

Interest revenue

Sales discount

Sales returns and allowances

Sales revenue

Selling expense

Chou Company uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, $284,000; (2) up to 120 days past due, $57,000; and (3) more than 120 days past due, $29,000. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectibility is (1) 3.0 percent, (2) 12 percent, and (3) 31 percent, respectively. At December 31, the end of the current year, the Allowance for Doubtful Accounts balance is $500 (credit) before the end-of-period adjusting entry is made. Required: 1. Prepare the appropriate bad debt expense adjusting entry for the current year. 2. Show how the various accounts related to accounts receivable should be shown on the December 31, current year, balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate bad debt expense adjusting entry for the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the adjusting journal entry for bad debt expense. Note: Enter debits before credits. Date General Journal Debit Credit December 31 No journal entry required Accounts receivable Administrative expense Allowance for doubtful accounts Bad debt expense Record entry View general journal Chou Company uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, $284,000; (2) up to 120 days past due, $57,000; and (3) more than 120 days past due, $29,000. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectibility is (1) 3.0 percent, (2) 12 percent, and (3) 31 percent, respectively. At December 31, the end of the current year, the Allowance for Doubtful Accounts balance is $500 (credit) before the end-of-period adjusting entry is made. Required: 1. Prepare the appropriate bad debt expense adjusting entry for the current year. 2. Show how the various accounts related to accounts receivable should be shown on the December 31, current year, balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Show how the various accounts related to accounts receivable should be shown on the December 31, current year, balance sheet. (Amounts to be deducted should be indicated by a minus sign.) CHOU COMPANY Partial Balance Sheet As of December 31 Accounts receivable $ 0 Administrative expense Required 2 Allowance for doubtful accounts Bad debt expense