Accounts Receivable Allowance Methods

Marion Company had sales revenue of $750,000 in 2019. Allowance for Bad Debts has a credit balance of $700. Study of prior years figures indicates 1.1% of net sales are uncollectible and 5.0% of A/R are uncollectible.

December 31, 2019 Age of Accounts

Accounts Receivable	1-30 Days	31-60 Days	61-90 Days	Over 90 Days
108,000	62,000	30,000	12,000	4,000
Estimated % Uncollectible	0.5%	5%	16%	55%

1. Prepare the journal entry to estimate bad debt expense assuming:
   1. The company uses the % of sales method
   2. The company uses the % of A/R method
   3. The company uses the aging of A/R method
2. Prepare the journal entry to write off $1,200 A/R from Grant Company on March 2, 2020.
3. Prepare the journal entries to record collection of $500 from Gr ant Company on June 5, 2020.