Assume the following events for the year 2011.

1. Credit sales $600,000

2. Cash sales 300,000

3. Accounts receivable balance 1/1/11 50,000

4. Accounts written off during the year were 9,000

5. Allowance for Uncollectibles balance 1/1/11 2,000

6. Sixty percent (60%) of this year's credit sales are

collected during the year.

Required

Scenario One Use the above data set. Assume that the company estimates itsannual bad debt expense at 2% of total sales.

1.Compute the Bad Debt Expense and provide the journal entry to show its recognition

2.Provide the journal entry showing the write-off of bad debts.

3.Show the balance sheet presentation of net accounts receivable.

Scenario Two Use the above data set. Ignore Scenario One. Assume that the company estimates that 4% of its accounts receivable will

notget collected.

1.Compute the Bad Debt Expense and provide the journal entry to show its recognition.

2.Provide the journal entry showing the write-off of bad debts. 3.Show the balance sheet presentation of net accounts receivable.