Aaron Servicing showed the following partial unadjusted results at October 31, 2023, its year-end:

AccountDebitCreditSales $1,740,000Accounts receivable$157,000 Allowance for doubtful accounts 3,200

Part 1 Required: a. Assuming Aaron estimates bad debts to be 1.5% of sales, prepare the adjusting entry at October 31, 2023.

Journal entry worksheet

Record the estimate for uncollectible accounts.

b. Show how accounts receivable would be shown on the October 31, 2023, balance sheet using your calculations in (a)

. Show how accounts receivable would be shown on the October 31, 2023, balance sheet using your calculations in (a).

Part 2 Required: c. Instead of (a), assume that Aaron estimates bad debts to be 5% of outstanding accounts receivable. Prepare the adjusting entry at October 31, 2023.

Record the estimate for uncollectible accounts.

d. Show how accounts receivable would be shown on the October 31, 2023, balance sheet using your calculations in (c).