Reference no: EM132612671

Kingbird Merchandising uses an aging schedule to determine its estimated uncollectible accounts at year end, and uses a single account for Allowance for Doubtful Accounts. An incomplete schedule is as follows:

KINGBIRD MERCHANDISING

Aged Schedule of Accounts Receivable   No. of Days

                                                     Outstanding         Amount               Estimated %

Uncollectible                             0-30 days             $61,440               0.44%

                                               31-60 days             26,040                6.41%

                                                  61-90 days          11,710              22.00%

Over                                                 90 days             4,8605               2.00%

                                                                                 $104,050

On December 31, the trial balance before adjustments shows the following balances:

                                                       Debit                  Credit 

Accounts Receivable                 $104,050

Allowance for Doubtful Accounts                      1,590

Question 1: Record the entry for bad debt expense for the current year assuming they use the table to determine the estimated uncollectible accounts. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.76.)