Question

ABC Advent Company has the following accounts receivables at 12/31/2017

Amount % Estimated Uncollected

Under 30 155,000.00 1%

30-60 67,000.00 5%

61-90 32,000.00 30%

91-120 17,000.00 50%

120+ 15,000.00 70%

286,000.00

The allowance for doubtful accounts has a 5,500.00 credit balance

Compute the correct balance in the allowance at 12/31/17

Record the journal entry to bad debt expense

Answer 1

Compute correct balance in the allowance at 12/31/17

Days	Amount	% Estimated uncollected	Amount estimated uncollected
Under 30	155000	1%	1550
30-60	67000	5%	3350
61-90	32000	30%	9600
91-120	17000	50%	8500
120+	15000	70%	10500
Total	286000		33500

Correct balance in the allowance at 12/31/17 = $33500

Journal entry

Date	account and explanation	debit	credit
dec 31	Bad debt expense (33500-5500)	28000
	Allowance for doubtful accounts		28000
	(To record bad debt expense)