At December 31, the Profit Company reports the following results for its calendar year from the adjusted trial balance.

Cash sales $ 1,600,000

Credit sales 2,400,000

Accounts Receivable 700,000

Allowance for Doubtful Accounts 1,000 credit balance

1. Prepare the adjusting entry to record bad debts assuming bad debt expense is estimated to be 1.5% of credit sales.

b. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectible accounts receivable are estimated to be 3.0% of year-end accounts receivable.

c. Assuming instead that the Allowance for Doubtful Accounts has a 1,500 debit balance. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectible accounts receivable are estimated to be 3.0% of year-end accounts receivable.