a Question #3: Bad Debts (A/R) Skywalker Products is unsure of which method to use for accounts receivable uncollectibles. On December 31, 2022, the balance in Accounts Receivable was $650,000 and net sales amounted to $3,500,000. An ageing analysis of the accounts receivable indicated that $15,500 in accounts are expected to be uncollectible. Past experience has shown that about 1% of net sales eventually are uncollectible. Prepare the adjusting entries to record estimated bad debts expense using the (1) percentage of sales basis and (2) the percentage of receivable basis under each of the following independent assumptions: Allowance for Doubtful Accounts has a credit balance of $3,200 before adjustment. Allowance for Doubtful Accounts has a debit balance of $730 before adjustment (a) (b) Calculations: DATE GENERAL JOURNAL PARTICULARS RAJUDITRANS PR A/R 650000 Net Sales 3 500 oor DEBIT Page CREDIT

guestien s=3; Bad Debts (A/R) Shywike Producti ar unsure of which method to whe for accounts receivable uncollectbles: On December 31, 2022, the balance hayweccunts Recelvable was 5650,000 and net saler amounted to 53,500,000, An afeing anslris of the accounts receivable Whicated that $15,500 in accounts are erpected to be uncollectible, Past experience hat shown that about 13 of ner sales eventually are uncollectible. Prepere the adjusting entries to record estimated bad debts expense using the(2) percentage of sales basis and (2) the percentage of recelvable bests under each of the following independent assumptions: (a) Allowance for Doubtful Actounts has a credit balance of $3,200 before adjustrent. (b) Alowance for Doubtful Accounts has a debit balance of $730 before adjustment Calculations: GENERAL JOURNAL Page