Bad Debt Practice 1. Record the writing-off $1,000 of Ms. Grey accounts receivable 2. Record the setting up of AFDA for the following company. Partial Ledger of Accounts: Audio Inc. Cash Equipment COGS $10,000 20,000 $8,000 Accounts Receivable Sales Revenue Owner's Capital $5,000 $10,000 $45,000 a. Establish an AFDA account according to the % of sales method at 1.7% b. 1.7% Establish an AFDA account according to the % of receivables method at 3. Set up an AFDA account using % of receivables method at 2.4% if the balance of collectibles is $150,000 a. Write-off Mr. Pink's collectible account of $600 b. Write-off Ms. Purple collectible account of $2,000 C. Write off Mrs. Orange collectible account of 2,000