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On Sore Feet Work Boots had the following balances at December 31, 2020, before the year-end adjustments:

Accounts Receivable
DebitCredit
77,500
 
Double line77,500Double line 

 

Allowance for Bad Debts
DebitCredit
 1,040
 
Double line Double line1,040

 

The aging of accounts receivable yields the following data:

Aging of Accounts Receivable
0-60 daysOver 60 daysTotal Receivables
Accounts Receivable $73,400 $4,100 $77,500
Estimated % uncollectible 3 % 24 %
Estimated total uncollectible

Journalize On Sore Feet Work Boots entry to record bad debts expense for 2020 using the aging-of-receivables method.

Journal
DateDescriptionDebitCredit
December 31
December 31

Prepare a T account to compute the ending balance of Allowance for Bad Debts.

Allowance for Bad Debts
DebitCredit
Double lineDouble line