Pachel Corporation reports the following information pertaining to its accounts receivable: The companys credit department provided the

Pachel Corporation reports the following information pertaining to its accounts receivable:

The company’s credit department provided the following estimates regarding the percent of accounts expected to eventually be written off from each category listed above:

The company uses a balance sheet approach to estimate credit losses.
a. Record the company’s uncollectible accounts expense, assuming it has a $1,400 credit balance in its Allowance for Doubtful Accounts prior to making the necessary adjustment.
b. Record the company’s uncollectible accounts expense, assuming it has a $1,600 debit balance in its Allowance for Doubtful Accounts prior to making the necessaryadjustment.

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Days Past Due Current 1-30 31-60 61-90 Over 90 $60,000 $40,000 $25,000 $12,000 $2,000 Current receivables outstandin Receivables 1-30 days past due Receivables 31-60 days past due Receivables 61-90 days past due Receivables over 90 days past due 2% 16 40