At December 31, Ingleton company reports the following result for the year.

cash sales $1,025,000

credit sales $1,342,00

In addition, its unadjusted trial balance the following items

Accounts receivable $ 575,000 debit

Allowance for doubtful accounts.$7,500 credit

Required

1 prepare the adjusting entry ton record bad debts under each separate assumption

1. Bad debts are estimated to be 2.5% of credit sales.
2. Bad debts are estimated to be 1.5% of total sales
3. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible.

2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts in part 1a.

3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts in part 1c.