Before Adjusting Entries, Martin's Accounts Receivable and Allowance for Doubtful

Short Answer

Before adjusting entries, Martin's accounts receivable and allowance for doubtful accounts are $65,000 and $1,500 (debit balance), respectively. Using an aging schedule of accounts receivable, it is determined that $4,000 of the accounts receivable would probably be uncollectible. Calculate bad debts expense to be reported on Martin's current year's income statement?