Prepare the journal entry to record bad debt expense for 2021, assuming that aging the
accounts receivable indicates that expected bad debts are $46,000
Balance needed..............................................................................$46,000
Balance before adjustment [see (b)]................................................$11,000
Adjustment required........................................................................$35,000
The journal entry would therefore be as follows:
Bad debt expense
Allowance for doubtful accounts
$35,000
$35,000