2. Bad debt expense must equal = 43,860

Problem 8-3B Aging accounts receivable L02,3 ecel CHECK FIGURE: 2. Bad Debt Expense $43,860 On December 31, 2017, RCA Company's Allowance for Doubtful Accounts had an unadjusted debit bal ance of $7,800. The accountant for RCA has prepared a schedule of the December 31, 2017, accounts re- ceivable by age and, on the basis of past experience, has estimated the percentage of the receivables in each age category that will become uncollectible. This information is summarized as follows: Age of Accounts Receivable December 31, 2017 Expected Percentage $620,000 355,600 1,000 11,500 7,600 Not due (under 30 days) 1 to 30 days past due 31 to 60 days past due 61 to 40 days past due Over 90 days past due 1.75% 2.5 8.5 35 60 Required 1. Calculate the amount that should appear in the December 31, 2017, balance sheet as the Allowance for Doubtful Accounts. 2. Prepare the journal entry to record bad debt expense for 2017 Analysis Component: On July 31, 2018, RCA concluded that a customer's $4,200 receivable (created in 2017) was uncollectible and that the account should be written off. What effect will this action have on RCA's 2018 profit? Explain your