At the beginning of the year, Tennyson Auto Parts had anaccounts receivable balance of $31,800 and a balance in theallowance for doubtful accounts of $2,980 (credit). During theyear, Tennyson had credit sales of $624,300, collected accountsreceivable in the amount of $602,700, wrote off $18,600 of accountsreceivable, and had the following data for accounts receivable atthe end of the period: Accounts Receivable Age Amount ProportionExpected to Default Current $22,400 0.01 1–15 days past due 5,3000.02 16–45 days past due 3,100 0.08 46–90 days past due 3,600 0.15Over 90 days past due 2,400 0.30 $36,800 Required: 1. Determine thedesired postadjustment balance in allowance for doubtful accounts.$ 2. Determine the balance in allowance for doubtful accountsbefore the bad debt expense adjusting entry is posted. $ 15,620 3.Compute bad debt expense. $ Feedback 1. The aging method attemptsto estimate the ending balance in the Allowance for DoubtfulAccounts. 2. Using T-accounts, start with the balance at thebeginning of the year, make the necessary debits and/or credits forthe transactions that occurred during the year, and calculate thenecessary write-offs to achieve the appropriate ending balance. 3.The aging method attempts to estimate the ending balance in theAllowance for Doubtful Accounts. 4. Prepare the adjusting entry torecord bad debt expense. Bad Debt Expense Allowance for DoubtfulAccounts Record adjusting entry for bad debt expense estimateFeedback 4. The aging method attempts to estimate the endingbalance in the Allowance for Doubtful Accounts. Feedback Partiallycorrect