Chapter 9, Problem 9.11BE

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 debit balance in the allowance for uncollectible accounts prior to the year-end adjustment. Prepare the adjusting journal entry to record the bad debt provision for the current year.