As an employee of Roy Company, you are provided with the following information:

Account Balances

as at December 31

Accounts receivable	$651,000 Dr.
Allowance for doubtful accounts	12,000 Cr.

Sales on credit for the year amounted to $2,000,000. An aging schedule shows the following totals:

Total		Number of Days Past Due
Balance	Current	1-30	30-60	61-90	Over 90
$651,000	$320,000	$175,000	$71,000	$65,000	$20,000

It is estimated that the following percentage of accounts receivable balances wil1 be uncollectible:

	Percentage
Number of	Estimated
Days Past Due	Uncollectible
Current	2%
1-30	4
31-60	12
61-90	25
Over 90	50

It is assessed that 3 percent of all credit sales during the year Rome be uncollectible.

Required:

1. (1)Assuming that Roy Company uses the aging analysis method, determine the balance required in the Allowance for Doubtful Accounts.

1. Prepare a journal entry to adjust the balance in the Allowance for Doubtful Accounts.

2. Assuming that Roy Company uses the percentage-of-credit-sales method instead of the aging method, prepare the journal entry to record bad debt expense for the year.

3. Prepare the journal entry to write off the account of Kara, who owes the company $1,300.