Prepare the year-end adjusting entry for bad debt expense

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Question - Marigold Corporation has conducted a year-end review of its outstanding accounts receivable and has determined the following information at December 31, 2021:

 

Outstanding Balance

Percentage Estimated to be Uncollectible

0-30 days outstanding

$64,400

2%

31-60 days outstanding

27,600

4%

61-90 days outstanding

13,800

9%

91-120 days outstanding

4,600

17%

Over 120 days outstanding

1,800

26%

Required -

1. Complete the aging schedule.

2. Prepare the year-end adjusting entry for bad debt expense, assuming the allowance for doubtful accounts has a credit balance of $1,800 prior to the adjustment.

3. Prepare the year-end adjusting entry for bad debt expense, assuming the allowance for doubtful accounts has a debit balance of $1,100 prior to the adjustment.

Reference no: EM133062452

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