On January 1, 2019, Hungryman, Inc., has the following balances for accounts receivable and allowance for doubtful accounts:
Accounts Receivable: $1,282,000
Allowance for Doubtful Accounts (a credit balance): $41,000
During 2019, Hungryman had $18,200,000 of credit sales, collected $17,945,000 of accounts receivable, and wrote off $60,000 of accounts receivable as uncollectible. At year-end, Hungryman performs an aging of its accounts receivable balance and estimates that $52,000 will be uncollectible.
For this question, prepare the necessary adjusting entry for 2019 as follows:
Bad Debt Expense: $52,000
Allowance for Doubtful Accounts: $52,000