• 1. An aging of accounts receivable is completed. It is estimated that $22,400 of the receivables outstanding at year-end will be uncollectible.

Bad Debts Expense	Allowance for Doubtful Accounts (adjusted balance)

• 2. It is estimated that 2% of credit sales for the year will prove to be uncollectible. (Note that this is an independent problem relative to #1 above).
• Bad Debts Expense
• Allowance for Doubtful Accounts (adjusted balance)