Question - During 2017, credit sales were $1823818, cash collections from customers $1864858, and $31837 in accounts receivable were written off. In addition, $3970 was collected from a customer whose account was written off in 2016. An aging of accounts receivable at December 31, 2017, reveals the following:
Age Group % of year-end AR in Group % Uncollectible 0 - 60 days 65% 4% 61 - 90 days 20% 15% 90 - 120 days 10% 25% Over 120 days 5% 40%
Required: Calculate the amount of the year-end adjusting entry for bad debts expense. Bad debt expense is estimated to be 3% of credit sales for the year.