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.)