World Class Work Shoes had the following balances at December 31, 2016, before the year-end adjustments:

The aging of accounts receivable yields the following data:

Requirements
1. Journalize World Class€™s entry to record bad debts expense for 2016 using the aging-of-receivables method.
2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts.

Transcribed Image Text:

Accounts Receivable Allowance for Bad Debts 78,000 1,060 Age of Accounts Receivable 0-60 Days Over 60 Days Total Receivables Accounts Receivable Estimated percent uncollectible $73,000 x 2% 5,000 24% 78,000