At January 1, Everbright Sales Has the Following Balances

question 126

Essay

At January 1, Everbright Sales has the following balances:
$$\begin{array} { | c | l | l | l | l | } \hline \text { Date } & \text { Accounts Receivable } & \text { Debit } & \text { Credit } & \text { Balance } \\\hline & & & & 18,000 \text { Dr. } \\\hline & & & & \\\hline\end{array}$$ $$\begin{array} { | c | c | c | c | c | } \hline \text { Date } & \begin{array} { c } \text { Allowance for } \\\text { Doubtful Accounts }\end{array} & \text { Debit } & \text { Credit } & \text { Balance } \\\hline & & & & 1,200 \mathrm { Cr } \text {. } \\\hline & & & & \\\hline\end{array}$$ $$\begin{array} { | l | l | l | l | l | } \hline \text { Date } & \text { Bad Debts Expense } & \text { Debit } & \text { Credit } & \text { Balance } \\\hline & & & & \\\hline & & & & \\\hline\end{array}$$ During the year, Everbright has $150,000 of credit sales, collections of $140,000, and write-offs of $3,000. Everbright records bad debt expense at the end of the year using the aging method. At the end of the year, the aging analysis produces a figure of $1,900, being the estimate of uncollectible accounts at end of year.
Required:
1. What is the December 31 journal entry to record the bad debts expense?
2. Present the Everbright accounts receivable in a partial balance sheet at December 31st.

---

Definitions:

Rawls's Model

A theoretical framework proposed by philosopher John Rawls that emphasizes principles of justice as fairness, including the veil of ignorance and the difference principle.

Impartial

Not biased, fair; treating or affecting all equally.

Morality of Authority

The concept that moral correctness stems from the authority of the setting, institution, or individual making the judgment.

Moral Development

The process by which individuals acquire and understand the distinctions between right and wrong, influencing ethical behavior.