Question: Batterman, Inc uses the Allowance Method to estimate bad debts The balance in Allowance for Doubtful Accounts was $800,000 on January 1, 2020 During 2020,

Batterman, Inc uses the Allowance Method to estimate bad debts

The balance in Allowance for Doubtful Accounts was $800,000 on January 1, 2020

During 2020, Batterman, Inc performed internal audit services

An aging of accounts receivable was prepared for the first time as of December 31, 2020

A summary of the aging (before adjustments below) is as follows

Classification by Month of Sale Balance in Each Category Estimated Uncollectible

OctoberDecember 2020 1,321,000 5

JulySeptember 223,000 12

JanuaryJune 657,000 28

Prior to 1120 2,475,000 75 4,676,000

Additional Information

Receivables from 2012 totaling $695,300 were written off as of December 31, 2020

A credit balance exists in Accounts Receivable (JanJune) for $120,780, which represented an unpaid electric bill Additional cash collections were received from accounts (JanJune) previously written off for $35,720

Cash collections were processed late in December 2020 for 325,000

Prepare the journal entries for the adjustments above

Calculate the Bad Debt Expense for 2020 (after adjustments)

Prepare the journal entry to record the 2020 adjustment to the Allowance for Doubtful Accounts

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