3. If ABC uses the Aging of A/R to provide for bad debt expense, what is the increase to Bad Debt Expense in July based on the information provided?

4. If ABC uses the Aging of A/R to provide for bad debt expense, what is the balance in the Allowance for Doubtful Accounts AFTER the bad debt expense entry in July?

5. If ABC uses the Percentage of Sales Methodology of providing for bad debt expense, what would be the increase to Bad Debt Expense as a result of July Sales? Note: changing from 5000 credit to 5000 debit.

6. If ABC uses the Percentage of Sales Methodology of providing for bad debt expense, what is the balance in the Allowance for Doubtful Accounts AFTER the bad debt expense entry in July?

7. If ABC uses the Aging of A/R to provide for bad debt expense, what is the increase to Bad Debt Expense in July based on the information provided?

8. If ABC uses the Aging of A/R to provide for bad debt expense, what is the balance in the Allowance for Doubtful Accounts AFTER the bad debt expense entry in July?

Company ABC had credit sales of $400,000 during the month of July. At the end of July, an examination into their A/R showed that the total balance was $350,000 broken down as follows: The expectations, based on analysis of historical A/R is that 99% of the current A/R is collectible, 90% of the 130 days, 80% of the 3160 days, 60% of the 6190 days and 20% of the greater than 90 days. If ABC uses the percentage of sales methodology of providing for bad debts, the estimate is used is 10% of credit sales are uncollectible. For Questions 1-4, assume the current balance in the Allowance for Doubtful Accounts is a \$5,000 Credit. For Questions 5-8, assume the current balance in the Allowance for Doubtful Accounts is a \$5,000 Debit