Jake Company had the following data on December 31,20X1, before any adjustments:

Accounts Receivable, December 31 $325,900 debit

Allowance for Doubtful Accounts, December 31 $24,820 credit

Total credit sales $3,600,000

Bad debt as a percent of credit sales 0.49%

Based on this data, estimate the amount of Bad Debt Expense that Jake Company should record as part of its December 31, 20X1 adjusting entry:

Bad Debt Expense $ _________

Jake Company's Accounts Receivable and Allowance for Doubtful Accounts on December 31, 20X1, before adjusting entries, are shown below. Update these T-accounts for the adjusting entry for Bad Debt Expense, showing the balance in Jake Company's Accounts Receivable and Allowance for Doubtful Accounts after adjusting entries have been made.

Accounts Receivable
12/31/X1	325,900
12/31/X1	???????

Allowance for Doubtful Accounts
		1/1/X1	24,820
		adjusting entry	?????
		12/31/X1	?????

Determine the amount of Bad Debt Expense that Jake Company should report on its 20X1 income statement. Also determine the net realizable value of Jake Company's Accounts Receivable after the adjusting entry is made on December 31, 20x1.

Income Statement:
Bad Debt Expense		$
Balance Sheet:
Accounts Receivable, Dec. 31, 20X1		$
Less: Allowance for Doubtful Accounts
Net Realizable Value of Accounts Receivable, Dec. 31, 20X1		$

Under the percent of sales method, the amount of the adjusting entry is - Select your answer -equal togreater thanless thanCorrect 8 of Item 4 the amount of Bad Debt Expense estimated under the percent of sales method.

Financial Statement Impact

Bennett Company had the following data on December 31, 20X1, before any adjustments:

Allowance for Doubtful Accounts, December 31		$31,000	credit
Total credit sales		$6,400,000