Problem 5-85A (Algorithmic) Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto Parts had an accounts receivable balance of $31,800 and a balance in the allowanc of $2,980 (credit). During the year, Tennyson had credit sales of $624,300, collected accounts receivable in the amount of $60 $18,600 of accounts receivable, and had the following data for accounts receivable at the end of the period: Accounts Proportion Expected Receivable Age Amount to Default Current $19,100 0.01 1-15 days past due 5,300 0.02 16-45 days past due 3,100 0.08 46-90 days past due 3,600 0.15 Over 90 days past due 2,400 0.30 $33,500 Required: 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. 3. Compute bad debt expense. Current $19,100 0.01 1-15 days past due 5,300 0.02 16-45 days past due 46-90 days past due 3,100 0.08 3,600 0.15 Over 90 days past due 2,400 0.30 $33,500 Required: 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. 3. Compute bad debt expense. 4. Prepare the adjusting entry to record bad debt expense. Record adjusting entry for bad debt expense estimate