Adjusting entry to recognize bad debts

Reference no: EM1312497

The Montgomery Burns Company had a $700 credit balance in Allowance for Doubtful Accounts at December 31, 2001, before the current year's (2001) provision for uncollectible accounts. An aging of the accounts receivable revealed the following:

		Estimated Percentage Uncollectible
Current Accounts	$120,000	1%
1-30 days past due	12,000	3%
31-60 days past due	10,000	6%
61-90 days past due	5,000	12%
Over 90 days past due	8,000	30%
Total Accounts Receivable	$155,000

Assuming that the company uses the percentage of receivables allowance method, prepare the adjusting entry on December 31, 2001, to recognize bad debts expense.

Reference no: EM1312497

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