At December 31, 2010, Aaliyah Company reports the following results for its calendar year.

Cash Sales	2112110
Credit Sales	3920000

In addition, its unadjusted trial balance includes the following items.

Accounts Receivable	1187760
Allowance for Doubtful Accounts	18100

Requirement 1:

Prepare the adjusting entry for Aaliyah Co. to recognize bad debts under each of the following independent assumptions

A. Bad debts are estimated to be 4% of credit sales.

B. Bad debts are estimated to be 3% of total sales.

C. An aging analysis estimates that 7% of year-end accounts receivable are uncollectible. Requirement 2: Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2010, balance sheet given the facts in Requirement 1a Requirement 3: Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2010, balance sheet given the facts in Requirement 1c.