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What appropriate adjusting entry to record bad debt expense

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Country Store, Inc. provides credit to their favorite customers. On December 31, 2018, the controller of Country Store prepared the following "aging of receivables":

Days Outstanding Amount Uncollectible %
Not Yet Due $ 50,000 3.0 %
0 - 60 Days Past Due 20,000 5.0 %
60 Days Past Due 10,000 20.0 %

On January 1, 2018, the balance in "Allowance for Doubtful Accounts" was $ 3,000. During the year, Country Store "wrote-off" accounts in the amount of $ 4,000. Country Store made no collections on accounts that had previously been "written-off", and no "provisions for bad debts" were made during the year.

Problem a: What is the desired balance in the "Allowance for Doubtful Accounts" On December 31, 2018?

Problem b: Given your answer to Part A, what is the appropriate Adjusting Entry to record "Bad Debt Expense" for the year-ending December 31, 2018?

Reference no: EM132763772

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