Reference no: EM132694780
Hudson, Inc. had a $920 credit balance in the Allowance for Doubtful Accounts at 12/31/18 before the journal entry was made to record Bad Debt Expense. An aging of the accounts receivable revealed the following:
Estimated % Uncollectible Current Accounts
$520,000 1%
1-30 Days Past Due 71,000 3%
31-60 Days Past Due 37,000 6%
61-90 Days Past Due 24,000 12%
Over 90 Days Past Due 8,000 30%
Total Accounts Receivable $660,000
Question 1: Prepare the necessary journal entry on December 31, 2018 to record Bad Debt Expense.
Question 2: On March 31, 2019, management authorized the write-off of the J. Barnes account for $1,062. Prepare the necessary journal entry.