Bad Debt Expense: Aging Method

Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year.

Accounts Receivable	Age Amount	Proportion Expected to Default	Allowance Required
Current	$310,500		0.005		$1,553
130 days past due	47,500		0.01		475
3145 days past due	25,000		0.13		3,250
4690 days past due	12,800		0.20		2,560
91135 days past due	6,100		0.25		1,525
Over 135 days past due	4,200		0.60		2,520
					$11,883

The balance in Glencoe's allowance for doubtful accounts at the beginning of the year was $58,620 (credit). During the year, accounts in the total amount of $62,400 were written off.

Required:

1. Determine bad debt expense.

2. Prepare the journal entry to record bad debt expense.

3. By how much would bad debt expense reported on the statement of earnings have changed if Glencoe had written off $90,000 of receivables as uncollectible during the year?