At December 31, Folgeys Coffee Company reports the following results for its calendar year.

Cash sales $ 900,000

Credit sales 300,000

Its year-end unadjusted trial balance includes the following items.

Accounts receivable $ 125,000 debit

Allowance for doubtful accounts 5,000 debit

a.

Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 1.5% of credit sales.

b.

Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 0.5% of total sales.

c.

Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 6% of year-end accounts receivable.