At December 31, 2015, Ethan Company reports the followi ing results for its calendar year Problem 8-3A Estimating and reporting bad debts P2 Cash sales $1,803,750 3,534,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $1,070.100 debit 15,750 debit There was objective evidence that 10% of a $150,000 debt owed by a debtor, Nathan Company, would most probably be uncollectible. An aging analysis of the rest of the accounts receivables indicated that an estimated 5% of these accounts would not be collectible