Problem #2. (10 points) The RYTELEWSKI, ADAMS & TAYLOR (RAT) Company has had trouble collecting all of their accounts receivable in prior years. The credit department has prepared an aging schedule showing the likelihood of collecting different groups of receivables. This schedule applies for the year ended 12-31-20. This information is based on past history. Accounts Months Percentage Deemed Receivable Outstanding Collectible $35,000 3 months 90% The current balance in the Allowance for Bad Debts account is a $2,600 DEBIT. REQUIRED: Using the aging of AR method, compute the amount of bad debt expense for 2020 and record the proper adjusting entry. Show all computations clearly!!! (3 points) Complete the "T" account below: BAD DEBT EXPENSE COMPUTATION: Allowance for Bad debts ENTRY: DR: CR: 2 Show how the AR section of the Balance Sheet would appear at 12-31-20 after taking into account the 2020 adjusting entry in part (1). (1.5 points) Balance Sheet 140 Dashboard Calendar To Do Notifications Inbox