Bad Debt Exmnse Practice Problem Keegan Corporation's accounting records disclosed the following information for 2013: Cash sales $680.0\") Net credit sales 527.000 Aocomts receivable (12/31/13) 190.000 Allowance for doubtful accounts (123111 3. prior to adjustment) 1,500 (deb'rd 1) Prepare the adjusting why that would be required under each of the following methods: a. Bad debts are estimated at 3% of net credit sales. b. Bad debts are estimated at 7.5% of gross accounts receivable. c. An aging of accounts receivable indicates that half of the outstanding accounts will incur a 3% loss, a quarter will incur a 6% loss, the remaining quarter will incur a 20% loss