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Problem 5-85A Determining Bad Debt Expense Using the Aging Method As the beginning of the year, Tennyson Auto Parts had an accounts receivable balance of
Problem 5-85A Determining Bad Debt Expense Using the Aging Method As the beginning of the year, Tennyson Auto Parts had an accounts receivable balance of $31,800 and a balance in the allowance for doubtful accounts of $2,980 (credit). During the year, Tennyson had credit sales of $624,300, collected accounts receivable in the amount of $602 700, wrote of $18,600 of accounts receivable, and had the following data for accounts receivable at the end of the period: Proportion Fspected to Default mount 001 10 urrent 20,40 n) 1.10) 1o 4s davs past due 6 0 days past due Oser 90 days past de 2400 54.8m Required: . Prepare journal entries for credit sales, collections, and write-offs 2. Determine the balance in allowance for doubtful accounts before the bad debt expense adjusting entry is posted 3. Determine the desired post-adjustment balance in allowance for doubtful accounts. 4. Compute bad debt expense. 5. Prepare the adjusting entry to record bad debt expense
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