A Company Had the Following Items and Amounts in Its

Essay

A company had the following items and amounts in its unadjusted trial balance as of December 31 of the current year:
$\begin{array} { l r r } &&\text { Estimated } \\&&\text { Uncollectible } \\\text { Account Age } & \text { Balance } &\text { Percentage }\\\hline \text { Current (not yet due) } & \$ 96,000 & 1.0 \% \\1 - 30 \text { days past due } & 64,000 & 2.5 \% \\30 - 60 \text { days past due } & 16,000 & 11.0 \% \\61 - 90 \text { days past due } & 6,500 & 37.0 \% \\\text { Over } 90 \text { days past due } & \underline { 3,200 } & 70.0 \% \\\text { Total } & \underline { \$ 185,700 } &\end{array}$
1. Calculate the amount of the Allowance for Doubtful Accounts that should appear on the December 31, of the current year, balance sheet.
2. Prepare the adjusting journal entry to record bad debts expense for the current year .