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need help with this on two column accounting paper The Broad Channel Company had a $500 credit balance in Allowance for Doubtful Accounts at December
need help with this on two column accounting paper
The Broad Channel Company had a $500 credit balance in Allowance for Doubtful Accounts at December 31, 2022 (this is the balance in the account before the current year's adjusting journal entry to record bad debts expense). An aging of the accounts receivable revealed the following: Current Accounts 1-30 days past due 3 1-60 days past due 61-90 days past due Over 90 days past due Total Accounts Receivable Instructions: $130,000 18,000 16,000 8,000 10 ooo Estimated % Uncollectible 3% 60/0 10% 450/0 a) Prepare the adjusting entry on December 31, 2022, to recognize bad debts expense. b) Assume the same facts as above except that the Allowance for Doubtful Accounts had a $500 debit balance before adjustment. Prepare the adjusting entry to record the current year's bad debts expense. OMIT EXPLANATIONS.
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