1) If Tyler uses the percentage of sales method, by how much should it debit Bad Debts Expense and credit the Allowance for Doubtful Accounts?

2) If Tyler analyzes the accounts recieveable to estimate its bad debts, by how much should it debit Bad Debts Expense and credit the Allowance for Doubtful Accounts?

Tyler Company uses the allowance method for bad debts. At the end of its accounting year there is a debit balance in the Allowance for Doubtful Accounts of $1,200. If it were to use the percent of sales method to estimate bad debts, they would be $5,200 which is 1% of net credit sales of $520,000. If it analyzes its accounts receivable (ages them) the bad debts estimate would be $5,900 Use this information to answer the following