Question

The following information was taken from the accounts receivable records of Blue Spruce Corporation as at...

The following information was taken from the accounts receivable records of Blue Spruce Corporation as at December 31, 2020:

Outstanding
Balance		 Percentage Estimated
to be Uncollectible
0 – 30 days outstanding $158,600 0.5%
31 – 60 days outstanding 65,000 2.5%
61 – 90 days outstanding 41,000 4.0%
91 – 120 days outstanding 18,200 6.5%
Over 120 days outstanding 4,100 10.0%

Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a debit balance of $4,110 prior to the adjustment.

Account Titles and Explanation

Debit

Credit
Business   Accounting   
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