Each December 31, Extra Company Ages Its Accounts Receivable to Determinethe

Essay

Each December 31, Extra Company ages its accounts receivable to determinethe amount of its adjustment for bad debts. At the end of this year, management estimated that $56,900 of the accounts receivable balance would beuncollectible. The Allowance for Doubtful Accounts account had a creditbalance of $3,200. Prepare the adjusting journal entry that Extra Companyshould make on December 31 of the current year, to estimate bad debts expense.