Joe's Inc. prepared an aging of its accounts receivable at December 31, 2009 and estimated that the net realizable value of the receivables would be $300,000. Additional information is available as follows:
- Allowance for doubtful accounts at 1/1/09-credit balance: $ 34,000
- Accounts written off as uncollectible during 2009: 23,000
- Accounts receivable at 12/31/09: 325,000
- Uncollectible accounts recovered during 2010: 5,000
Required:a. What should Ace book as its bad debt expense at 12/31/09? What is the journal entry to record the bad debt expense in item a?