1. Ramsey Company estimates that 1% of net credit sales will become uncollectible. Sales are $400,000, sales returns and allowances are $10,000, and the allowance for doubtful accounts has a $5,000 credit balance before adjustment. a) What is the amount of bad debt expense for the period? b) What will the balance in the Allowance for Doubtful Accounts account be AFTER the adjusting journal entry is made? C) Prepare the journal entry to record the estimate of bad debt expense 2. Ramsey Company estimates that 3% of accounts receivable will become uncollectible. Accounts receivable are $200,000 at the end of the year, and the allowance for doubtful accounts has a $500 debit balance before adjustment. a) What is the amount of bad debt expense for the period? b) What will the balance in the Allowance for Doubtful Accounts account be AFTER the adjusting journal entry is made? c) Prepare the journal entry to record the estimate of bad debt expense