E$6-14($Algo$)$ Recording and Reporting a Bad Debt Estimate Using Aging Analysis L$06-2$

Casilda Company uses the aging method to estimate bad debt expense. Casilda estimates that $4\%$ of receivables that are not yet due,

$13\%$ of receivables that are up to $180$ days past due, and $31\%$ of receivables that are more than $180$ days past due will be uncollectible.

The company currently has $$50,300$ of accounts receivable that are not yet due, $$14,100$ that are up to $180$ days past due

that are more than $180$ days past due.

At December $31,$ the end of the current year, the Allowance for Doubtful Accounts balance is $$100($credit$)$ before the end$-$of$-$period

adjusting entry is made.

Required:

Prepare the appropriate bad debt expense adjusting entry for the current year.

Show how gross accounts receivable, the allowance for doubtful accounts, and net accounts receivable should be shown on the

December $31$ balance sheet.

Complete this question by entering your answers in the tabs below.

Prepare the appropriate bad debt expense adjusting entry for the current year. $($If no entry is required for a transaction$/$event$,$ select $"$No

journal entry required" in the first account field.$)$

Journal entry worksheet

$1$

Record the adjusting journal entry for bad debt expense.

Note: Enter debits before credits.