The Broad Channel Company had a $500 credit balance in Allowance for Doubtful Accounts at December 31, 2022 (this is the

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The Broad Channel Company Had A 500 Credit Balance In Allowance For Doubtful Accounts At December 31 2022 This Is The 1 (2.06 MiB) Viewed 58 times

The Broad Channel Company had a $500 credit balance in Allowance for Doubtful Accounts at December 31, 2022 (this is the balance in the account before the current year's adjusting journal entry to record bad debts expense). An aging of the accounts receivable revealed the following: Estimated % Uncollectible Current Accounts $130,000 1-30 days past due 18,000 31-60 days past due 16,000 61-90 days past due 8,000 Over 90 days past due 10,000 Total Accounts Receivable $182,000 3% 6% 10% 16% 45% Instructions: a) Prepare the adjusting entry on December 31, 2022, to recognize bad debts expense. b) Assume the same facts as above except that the Allowance for Doubtful Accounts had a $500 debit balance before adjustment. Prepare the adjusting entry to record the current year's bad debts expense. OMIT EXPLANATIONS.