Marigold Corporation has conducted a year-end review of its outstanding accounts receivable and has determined the following information at December 31, 2021:

Outstanding Percentage Estimated

Balance to be Uncollectible

0-30 days outstanding $64,400 2%

31-60 days outstanding 27,600 4%

61-90 days outstanding 13,800 9%

91-120 days outstanding 4,600 17%

Over 120 days outstanding 1,800 26%

Required:

1. Complete the aging schedule.
2. Prepare the year-end adjusting entry for bad debt expense, assuming the allowance for doubtful accounts has a credit balance of $1,800 prior to the adjustment.
3. Prepare the year-end adjusting entry for bad debt expense, assuming the allowance for doubtful accounts has a debit balance of $1,100 prior to the adjustment.