Chapter 9, Problem 9.10BE

Bad Debt Expense, Journal Entry. Paul Anchor Incorporated estimated that bad debt expense would equal 4% of the ending balance of accounts receivable for the current year. This year’s ending balance of accounts receivable amounted to $2,500 000. There was a $69,000 credit balance in the allowance for uncollectible accounts prior to the year-end adjustment Prepare the adjusting journal entry to record bad debt expense for the current year.