Based on past experiences, a company has decided to establish the management of an estimate for uncollectible accounts. It has the following information from the year 200X

75% of sales are on credit and the rest counted. With this information determine: a) The customer balance as of December 31. b) The amount of the estimate of bad debts of the period if the percentage method is used sales at a rate of 3.5%. c) The amount of the estimate of bad debts of the period if the percentage method is used accounts receivable at a rate of 3.5%. Make the corresponding entries

\begin{tabular}{|l|l|} \hline annual sales & 5980000 \\ \hline sales discount & 85200 \\ \hline sales returns & 62000 \\ \hline customer balance as of January 1 & 3764000 \\ \hline charges made during the year & 2340000 \\ \hline \end{tabular}