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Sagot :
Based on the information given bad debt expense is $8,675 and the journal entry is: Debit Bad debt $6,575; Credit Allowance for Doubtful Account $6,575.
a. Bad debt expense:
Accounts Receivable Amount % Estimated Uncollectible
Current $65,000 2% $1,300
1–30 days past due $12,900 5% $645
31–90 days past due $10,100 30% $3,030
Over 90 days past due $7,400 50% $3,700
Total $8,675
b. Journal entry:
March 31 2021
Debit Bad debt $6,575
Credit Allowance for Doubtful Account $6,575
($8,675-$2,100)
Inconclusion bad debt expense is $8,675 and the journal entry is: Debit Bad debt $6,575; Credit Allowance for Doubtful Account $6,575.
Learn more about bad debt expense here:https://brainly.com/question/24871617
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