Canton Imports prepared the aging schedule below at December 31.
(a) Complete the aging schedule.
(b) Prepare the adjusting journal entry at December 31 to record bad debts expense, assuming that the allowance account has a credit balance of $3,600.
(c) Prepare the adjusting journal entry at December 31 to record bad debts expense, assuming that the allowance account has a debit balance of $5,400.

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Number of DaysAccounts Estimated Percentage Uncollectible Total Estimated Uncollectible Accounts OutstandingReceivable o-30 days 31-60 days 61-90 days Over 90 days Total $368,000 120,000 72,000 40,000 $600,000 1% 4% 10% 20%