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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