McQueen Engines uses the Allowance method for handling receivables using 8% of current accounts receivable for the Allowance for Doubtful Accounts.  Based on the unadjusted trial balance, accounts receivable has a $275,000 and allowance for doubtful accounts has a $1,500 credit balance.

1. Calculate ending allowance for doubtful accounts and bad debt expense. 
2. Prepare the Dec 31 Journal entry to record bad debt expense 
3. Post your entry to the T-accounts

b) 

Journal

Date	Description	Debit	Credit
Dec 31
Dec 31

c) 

Bad Debt Expense

Debit	Credit
Double line	Double line

Allowance for Doubtful Accounts

Debit	Credit
Double line	Double line