ACC244-Financial Accounting FALL 2019 Ch6 - Graded Homework Assignment ACCOUNTS RECEIVABLE: In 2018, Viking Corp. began the year with the following balances in its accounts: Accounts Receivable Allowance for Doubtful Accounts $500,000 $21,000 During 2018, Viking sold $3,250,000 on account and collected $2.935,000 in cash from previously billed accounts, Viking also wrote off $17,000 of accounts deemed uncollectible. Answer the following questions: 1) Compute the ending balance in the accounts before any adjustment to true-up the allowance account): Accounts Receivable Allowance for Doubtful Accounts 2) If Viking Corp uses the percentage-of-sales approach to estimating its bad debts, what would be the Bad Debt Expense that would be recorded for 2018 if it historically experiences approximately 1.5% write-offs annually? increase/decrease (circle one) 3) Assume instead that Viking Corp uses the percentage-of-receivables method to estimate its uncollectible accounts. Viking's aging shows the following: X uncollectible Current 1-30 days past due 31-60 days past due 61 days past due Amount 515,000 175,800 81,700 25,500 10% 30% What would be the amount of Bad Debt Expense that would be recorded in the adjustment for the Allowance at 12/31/18? increase/decrease (circle one)