The following information was taken from the accounts receivable records of Martinez Corporation...
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The following information was taken from the accounts receivable records of Martinez Corporation as at December 31, 2020: 0 - 30 days outstanding 31 - 60 days outstanding 61 - 90 days outstanding 91 - 120 days outstanding Over 120 days outstanding Outstanding Balance $156,000 64,200 41,400 21,200 5,000 Percentage Estimated to be Uncollectible 0.5% 2.5% 4.0% 6.5% 10.0% (a) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a credit balance of $1,110 prior to the adjustment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (b) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a debit balance of $3,840 prior to the adjustment. (Round answers to 0 decimal places, e.g. 8,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit
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