32. The following information was abstracted from the 2016 financial statements of Jennings Company:

Sales (cash and credit) ...............................................	$747,000	*
Accounts Receivable, December 31, 2016 ..............	128,000
Allowance for Doubtful Accounts .....................	1,000	debit balance
Sales discounts .....................................	18,000	*
Sales returns .......................................	12,400	*
*30% of sales are credit sales ........................ *Sales discounts and returns should be deducted to determine net sales.

a. Prepare the adjusting entry for doubtful accounts expense under each of the following assumptions:

(1)	5 percent of current accounts receivable are uncollectible, (remember the debit balance of $1,000).
(2)	3 percent of credit sales are uncollectible.

(3) Joe Smith a customer with a balance of $1,200 is bankrupt and the auditor informs you to write off the account as a bad debt.