A Normal No Spacing Heading 1 Heading 21 Title Judy's Doggy Day Care sells its services to customers on a credit basis. An adjusting entry for uncollectible accounts expense is recorded only at December 31, the company's fiscal year-end. The December 31, 2019 balance sheet disclosed the following: Current Assets: Accounts Receivable, net of allowance for uncollectible accounts of $30,000 $532,000 During 2020, credit sales were $2,750,000, cash collections from customers $2,830,000, and $25,000 in accounts receivable were written off. 1. What is the balance in the Accounts Receivable account at 12/31/2020? (Hint: use a T-account to post all the information provided above that impacts the Accounts Receivable account in 2020) 2. Calculate the amount of bad debt expense to be recorded at 12/31/2020, assuming each of the following independent situations: a. Bad debt expense is estimated to be 3% of credit sales for the year. b. Bad debt expense is calculated using the results of the aging analysis shown below. An aging of receivable at December 31, 2020, reveals the following: Age Group 0-60 days 61-90 days 91-120 days Over 120 days Percentage of Year-end Receivables in Group Percent Uncollectible 65% 4% 20% 12% 10% 25% 5% 40% ed States) NOTE: Using an aging of accounts receivable is one approach for using the gross receivables method. Using an aging approach applies a different percentage to each aging category in determining the desired ending balance in the allowance account rather than using a single percentage. An aging approach is more precise because you are adjusting the percentage based on the age of the accounts, the older the account the more likely it is to become uncollectible. Focus