Chapter 9, Problem 9.7E

Bad Debt Expense, Aging of Accounts Receivable, Journal Entry. The Klug Group provided the following analysis of its aged schedule of accounts receivable:

Aging Category	Ending Balance	Percent Estimated Uncollectible
Current	$300,000	0%
1-30 days past due	620,000	12
31-60 days past due	122,000	25
61-90 days past due	173,500	70
Ovor 90 days past duo	63,000	90

The allowance for uncollectible accounts had a credit balance of $260,400 at the beginning of the year. During the year the company wrote off bad debts of $10,650 Klug’s net credit sales were $2,900,550.

Required

1. a. Prepare all journal entries required to record the bad debt provision for the current year.
2. b. Repeat part (a) assuming that the allowance for uncollectible accounts had a debit beginning balance of $23,545.