MPI sells component parts to various automotive mechanics. The company's credit policy for its

customers requires invoices to be paid within thirty days of product delivery. The company has a

fiscal year$-$end of December $31$st$.$

The following information is available for the company's $2023$ fiscal year:

Bad debt expense for the year will be determined using an aging analysis $($this company does not use

the percentage of sales method throughout the year$).$ The company estimates the uncollectible

amount of year$-$end accounts receivable could be estimated using the following schedule:

At the end of $2023,60\%$ of gross receivables are $1-30$ days old, $25\%$ are $31-60$ days old, $8\%$ are $61-$

$90$ days old, and $7\%$ are greater than $90$ days old.

Required:

Calculate the $2023$ year$-$end balance for the allowance for expected credit losses and bad debt

expense under the aging method.

Prepare the required journal entry to record the bad debt expense in requirement $1.$