At December 31, 2020, before any year-end adjustments are made, White Corporation had a \(\$ 50\) balance in Accounts Receivable and a \(\$ 0.6\) debit balance in the Allowance for Uncollectible Accounts.

Requirements

1. What is the normal balance in the Allowance for Uncollectible Accounts? What would cause this account to have a debit balance?

2. How does management determine the amount of uncollectible accounts?

3. The aging of receivables indicates that White Corporation will not collect \(\$ 1.5\) million of its accounts receivables. Prepare the journal entry to record the bad debt expense for 2020.