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

Short Answer

Before adjusting entries, Kelvin's accounts receivable and allowance for doubtful accounts are $65,000 and $1,500, respectively.Using an aging schedule of accounts receivable, it is determined that $3,000 of the accounts receivable would probably be uncollectible.Calculate bad debts expense to be reported on Kelvin's current year's income statement?