Question: Paul Anchor, Incorporated estimated that bad debt expense would equal 4% of the ending balance of accounts receivable for the current year. This years ending

Paul Anchor, Incorporated estimated that bad debt expense would equal 4% of the ending balance of accounts receivable for the current year. This year’s ending balance of accounts receivable amounted to $ 2,500,000. There was a $ 69,000 credit balance in the allowance for uncollectible accounts prior to the year- end adjustment. Prepare the adjusting journal entry to record the bad debt provision for the current year.

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