Journal entry to record hilarys bad debt expense

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Reference no: EM13516732

Determining bad debt expense from an aging schedule

Hilary Company's year-end accounts receivable show the following balances by age:

Age of accounts

Balance

Not due yet

€600,000

0-30 days

200,000

31-60 days

45,000

61-120 days

20,000

More than 120 days

10,000

The credit balance in the allowance for doubtful accounts is now €8600. Hilary Company's prior collection experience suggests that Hilary should use the following percentages to compute the total uncollectible amount of receivables: 0-30 days, 0.5% 31-60 days, 1.0% 61-120, 10%, and more than 120 days, 70%.

Required

Prepare the journal entry to record Hilary's bad debt expense.

Reference no: EM13516732

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