Manilow Corporation operates in an industry that has a high rate of bad debts. Before any yearend adjustments, the balance in Manilows Accounts Receivable account was $650,000 and Allowance for Doubtful Accounts had a credit balance of $45,500. The yearend balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. The amount of accounting receivable writeoffs during the year in the amount of $19,500 has not been recorded yet.

(a) What is the journal entry to record the writeoff of uncollectible account receivable?

(b) What is the appropriate balance for Allowance for Doubtful Accounts at yearend (show your work)?

(c) Show how accounts receivable would be presented on the balance sheet.

(d) What is the additional bad debt expense needs to be recorded? Write out the journal entry (show your work).

Probability of Collection Days Account Outstandin Less than 16 day Between 16 and 30 da Between 31 and 45 da Between 46 and 60 da Between 61 and 75 da Over 75 da Amount $ 325,000 $156,000 $ 78,000 $ 39,000 $ 32,500 $ 19,500 0.95 0.90 0.85 0.80 0.55