bad debt reporting presented below is information related to the accounts receivabl 1574715

(Bad-Debt Reporting) Presented below is information related to the Accounts Receivable accounts of Gulistan Inc. during the current year 2014.

1. An aging schedule of the accounts receivable as of December 31, 2014, is as follows.

2. The Accounts Receivable control account has a debit balance of $372,400 on December 31, 2014.

3. Two entries were made in the Bad Debt Expense account during the year: (1) a debit on December 31 for the amount credited to Allowance for Doubtful Accounts, and (2) a credit for $3,240 on November 3, 2014, and a debit to Allowance for Doubtful Accounts because of a bankruptcy.

4. Allowance for Doubtful Accounts is as follows for 2014.

5. A credit balance exists in Accounts Receivable (60–90 days) of $4,840, which represents an advance on a sales contract.

Instructions

Assuming that the books have not been closed for 2014 make the necessary correcting entries.