Chapter 9, Problem 9.12BE

Bad Debt Expense, Aging of Accounts Receivable, Journal Entry. Burl Brothers provided the following information regarding its accounts receivable at the beginning of the current year

Accounts receivable	$1,320,000
Allowance for doubtful accounts	(320,000)
Net realizable value	$1,000,000

During the year, the company reported net credit sales of $21,000,000 of which it collected $9,900,000 The company wrote off $51 000 of actual bad debts for the year Burl Brothers estimates the allowance for doubtful accounts at 4% of the ending accounts receivable balance. Prepare the journal entry to record the year-end adjusting entry for the bad debt expense