1.	SallyCo has determined that the receivable from BobCo in the amount of $35,300 is uncollectible.
	Prepare the journal entry writing off the BobCo receivable assuming SallyCo uses the Direct Write-Off Method

Account	DR	CR
Bad Debt Expenses	35,300
AR		35,300

2.	SallyCo has determined that the receivable from BobCo in the amount of $35,300 is uncollectible.
	Prepare the journal entry writing off the BobCo receivable assuming SallyCo uses the Allowance Method

Account	DR	CR
Allow for Bad Debts	35,300
AR		35,300

3.	IBT CO uses the allowance method for bad debts. IBT estimates its allowance for bad debts based on a historically supported
	factor of 7% of accounts receivable. IBT's 2019 credit sales were $10,500,000. IBT's AR balance as of 12/31 is $5,650,000
	The balance in IBT's Allowance for Bad Debts account as of 12/31/18 was $(246,000).
	Prepare the adjusting entry required to adjust IBT's Allowance for Bad Debts as of 12/31/19:

Account	DR	CR
Allowance for Bad Debt		149,500
Bad Debt Expnse	149,500

4.	Assume the same facts as #3 above except the balance in IBT's Allowance for Bad Debts account was $125,500
	Prepare the adjusting entry required to adjust IBT's Allowance for Bad Debts as of 12/31/19:

Account	DR	CR
Allowance for Bad Debt		521,000
Bad Debt Expnse	521,000

After knowing these facts what is the answer for the fifth question?

5.	ABC Co has the following balances in its accounts as of 12/31/19:
	Accounts Receivable	7,360,600
	Allowance for Bad Debts	(270,000)
	Bad debt expense	150,000
	a. ABC Co needs to make the following adjustments as of 12/31/19:
	b. Write off an uncollectible account from AAA for $95,000
	c. Record receipt of $132,000 received from bankruptcy court re: BBB Co. This receivable was written off in 2018.
	d. Adjust the Allowance Account to 8.6% of AR

Compute the adjusted balances in the following accounts as of 12/31/19
Accounts Receivable
Allowance for Bad Debts
Bad debt expense