Mahler Company provides the following information relating to sales, accounts receivable and the provision for doubtful accounts for year X2 (000 CU omitted).
Sales for X2
3,000
Sales returns on credit sales
100
Accounts receivable balance, on 1 January X2
400
Provision for doubtful accounts balance, on 1 January X2
40
Cash collected on accounts receivable during X2
1,000
Accounts written off as bad debt expenses during X2
30
Required
1 Record the write-off of uncollectible doubtful accounts during X2.
2 Prepare the adjusting entry required on 31 December X2 to record the provision on doubtful accounts for each of the following independent assumptions:
(a) The provision for doubtful accounts is based on the ending balance of accounts receivable. Eighty percent of the sales during X2 were credit sales. The accountant of Mahler Company,
Mr Gustav, estimates, from past experience, that 10 percent of the 31 December X2 accounts receivable will prove to be doubtful.
(b) The provision for doubtful accounts is based on net credit sales. The accountant estimated that 80 percent of the sales are credit sales, and that 5 percent of the net credit sales will prove to be doubtful.
(c) The provision for doubtful expense is based on aging of accounts receivable. The following aging schedule has been prepared by the accountant:

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Days outstanding Amount 0-30 days 31-60 days 61-90 days More than 90 days Probability of collection 95% 90% 80% 70% 900 500 20