Reacher Corporation sells paper products to a large number of retailers. Reacher's accountant has prepared the following aging schedule for its accounts receivable at the end of the year.

Accounts Receivable Category Amount Proportion Expected to Default

Within discount period $384,500 0.4 %

130 days past discount period 187,600 1.5 %

3160 days past discount period 41,800 8.5 %

Over 60 days past discount period 21,400 20 %

Before adjusting entries are entered, the pre adjustment balance in the allowance for doubtful accounts is a credit of $8,515. Required:

1. Calculate the desired post adjustment balance in Reachers allowance for doubtful accounts. $____________

2. Provide the end of year journal entry below to record the bad debt expense for the year.

Date Account Debit Credit

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2022, 12/31

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