Smith Enterprises at year end December 31,2016 does an analysis of its accounts receivable.

The following is the detail of the analysis:

Customer balance

Shee $120,000.00 age information 30% is Current and 70% is 60 days old

Drish $200,000.00 age information 10% is Current and 30% is 60 days old and 60% is over 90 days old

Sully $320,000.00 age information 20% is current and 30% is 30 days old and 50% is 90 days old

Cord $100,000.00 age information 30% is Current and 60% is 60 days old and 10% is 90 days old

Wright $50,000.00 age information 25% is 90 days old and 75% is over 90 days old

Total $790,000.00

Current balances are estimated to be 2% uncollectible, 30 days 5%, 60 days 7%, 90 days 20% and over 90 days are 20%.

Smith uses the balance sheet method for estimating bad debts and the current balance in the allowance account is a $10,000 debit balance.

Required:

1) Prepare an age analysis of the accounts receivable in EXCEL

2) Prepare the adjusting entry for bad debts at 12/31/2016.