Blanchard Company's accounts receivable subsidiary ledger reveals the following information.

Blanchard Company's receivable collection experience indicates that, on the average, losses have occurred as follows:

The Allowance for Bad Debts credit balance on December 31, 2002, was \($2,245\) before adjustment.
1. Prepare an accounts receivable aging schedule.
2. Using the aging schedule from (1), compute the Allowance for Bad Debts balance as of December 31, 2002.
3. Prepare the end-of-year adjusting entry.
4. (a) Where accounts receivable are few in number, such as in this exercise, what are some possible weaknesses in estimating bad debts by the aging method?

(b) Would the other methods of estimating bad debts be subject to these same weaknesses? Explain.

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Account Balance Invoice Customer Allison, Inc.. Dec. 31, 2002 Amounts and Dates $8,795 $3,500 12/6/02 5,295 11/29/02 Banks Bras.. 5,230 3,000 9/27/02 2,230 8/20/02 Barker & Co. 7,650 5,000 12/8/02 2,650 10/25/02 Marrin Co. 11,285 5,785 11/17/02 5,500 10/9/02 Ring, Inc. 7,900 4,800 12/12/02 3,100 12/2/02 West Corp. 4,350 4,350 9/12/02