1. When a customer account is recognized as uncollectible and written off, under the allowance method

a. it is always debited to Bad Debt Expense.

b. it may be debited to Bad Debts Expense if the amount is immaterial.

c. it is only debited to Allowance for Doubtful Accounts under IFRS.

d. it is always debited to Allowance for Doubtful Accounts

2. Campbell Enterprises had record sales in 2022. It began 2022 with an Accounts Receivable balance of $420,000 and an Allowance for Doubtful Accounts of $33,200. Campbell recognized credit sales during the year of $3,521,500 and made monthly adjusting entries equal to 0.5% of each months credit sales to recognize bad debt expense. Also during the year the company wrote off $29,185 of accounts that were deemed to be uncollectible, although one customer whose $1,900 account had been written off surprised management by paying the amount in full in late September. Including this surprise receipt, $2,754,190 cash was collected on account in 2022.

In preparation for the audited year-end financial statements, the controller prepared the following aging listing of the receivables at December 31, 2022:

	Balance	Percentage estimated to be uncollectible
0-30 days outstanding	$649,025	3%
31-60 days outstanding	$ 382,500	12%
61-90 days outstanding	$ 98,250	16%
Over 90 days outstanding	$30,250	20%

Instructions:

Prepare a schedule calculating the balance in Campbells Allowance for Doubtful Accounts at December 31, 2022. Prepare any necessary journal entry at year end to adjust the allowance for doubtful accounts to the required balance.

0-30 days outstanding
31-60 days outstanding
61-90 days outstanding
Over 90 days outstanding