5.12

Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto Parts had an accounts recelvable balance of $31,800 and a balance in the allowance for doubtful accounts of $2,980 (credit) During the year, Tennyson had credit sales of $624,300, collected accounts receivable in the amount of $602,700, wrote off $18,600 of accounts receivable, and had the following dota for accounts receivable at the end of the period: 1. Determine the desired postadjustment balance in allowance for doubtful accounts. 2. Determine the balance in allowance for doubtful accounts before the bad debt expense adjusting entry is posted. 5 3. Compute bad debt expense. 4. Prepare the adjusting entry to record bad debt expense. If an amount box does not require an entry, leave it blank (Record adjusting entry for bad debt expense estimate)