The following aged receivables schedule has been provided for Brown Company: ...
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Accounting
The following aged receivables schedule has been provided for Brown Company:
| BROWN COMPANY | |||||||||||||||||||
| Accounts Receivable Aging Summary | |||||||||||||||||||
| Customer Category | Balance 31 Dec 20X6 | Age of Account Balance | |||||||||||||||||
| Current | 3160 Days | 6190 Days | Over 90 Days | ||||||||||||||||
| Government | $ | 3,650 | $ | 2,290 | $ | 500 | $ | 360 | - | ||||||||||
| Corporate | 2,040 | 1,610 | 200 | 60 | 110 | ||||||||||||||
| Other | 6,980 | 3,100 | 2,100 | 650 | 480 | ||||||||||||||
| $ | 12,670 | $ | 7,000 | $ | 2,800 | $ | 1,070 | $ | 590 | ||||||||||
| Expected default rate | 0.30 | % | 1 | % | 10 | % | 60 | % | |||||||||||
Required:
Prepare the year-end adjusting entry to record bad debt expense. Assume the allowance account has a nil balance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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