Ross Jewellers has the following account balances at December 31, 2020: Accounts Receivable $199,700 and Allowance for Doubtful Accounts $2,100 (credit balance).

Ross uses the aging of accounts receivable to estimate bad debts. The following aging schedule reflects the situation at year-end

Estimated

Age GroupUncollectable

Account AgeBalancePercentage

Current$98,0002.0

1-30 days past due75,0004.0

31-60 days past due16,00015.0

61-90 days past due6,40035.0

Over 90 days past due4,30045.0

(1)Calculate the amount of the Allowance for Doubtful Accounts that should appear on the December 31, 2020, Balance Sheet.

(2)Prepare the journal entry to record the 2020 Bad Debts expense.