The controller of the business outlined in the example question is from the double-breasted, dull grey suit, old guard school of accounting (and most likely wears a green eye shade). He argues that a customer’s account receivable should be written off as uncollectible when it becomes more than 30 days old. The normal credit term offered by the business to customers is 30 days. At the end of its first year, $278,400 of the company’s $645,000 accounts receivable is more than 30 days old. What bad debts expense entry would the controller make at the end of the year if he had his way? Do you agree with his approach?