Net Zero Products, a wholesaler of sustainable raw materials, estimates uncollectible accounts using the allowance method at December 31. It prepares the following aging of receivables analysis.

a. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method.

b. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,000 credit.

c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $100 debit.

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Days Past Due Total 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable.. Percert uncollectible $115,200 $18,000 3% $7.200 5% $6,000 11% $4.000 8% $80,000 1%