The adjusting journal entry
Debit: Bad Debt Expense $70
Credit: Allowance for Doubtful Accounts $70
The adjusting journal entry required at December 29, 2018, for recording Bad Debt Expense using the aging of accounts receivable method:
Date: December 29, 2018
Description: Bad Debt Expense
Debit: Bad Debt Expense $70
Credit: Allowance for Doubtful Accounts $70
This entry will increase the Bad Debt Expense account by $70 and increase the Allowance for Doubtful Accounts account by $70.
This will reflect the estimated amount of Accounts Receivable that Rogala Foods expects to be uncollectible.