198 Chap 7. Information on Fog Co. as of Dec. 31, 20x1 is as follows: Net credit sales Accounts receivable, Dec. 31 Allowance for bad debts, Dec. 31 (unadjusted) Percentage of credit sales 4.200.00 651.00 35.70 Fog Co. uses the percentage of credit sales in determining be debts in monthly financial reports and the aging of receivable in annual financial statements. Fog Co.'s aging schedule a Dec. 31, 20x1 is as follows: Days outstanding 0-60 61-120 Over 120 Receivable balances % uncollectible 252,000 1% 189,000 2% 210,000 6% 651,000 Total accounts receivables. Fog Co. wrote-off P79,800 accounts and recovered P18,900 accounts during the year. On Dec. 31, Fog Co. determined that P42,000 accounts receivable from a certain customer included in the "61-120 days outstanding" group is 95% collectible and a P21,000 account included in the "Over 120 days outstanding" group is worthless and needs to be written-off. Requirements: Compute for the following: a. Unadjusted bad debt expense recognized during the year. b. Balance of the allowance for bad debts on January 1, 20x1. c. Adjusted balance of the allowance account on Dec. 31, 20x1 d. Adjusted bad debts expense for the year. e. Recoverable historical cost of accounts receivable on Dec. 31. f. Provide the necessary year-end adjusting entry(ies).