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3. Kenco Inc. uses the allowance method and an aged accounts receivable as the basis for writing off for bad debts. On 12/31/18 credit department estimated that of the balance in accounts receivables on 12/31/18 would amount to $225,000 for fiscal year 18. The balance in the Allowance for Bad Debts account was a debt of $25,000. Required:Make the required Journal entry on 12/31/18.

This is the full question:

1. Claireco Inc. uses the allowance method to write off all bad debts.On 12/31/18 an aged accounts receivable indicated that bad debt expense would be $75,000. The balance in the Allowance for Bad Debts account on that date was a credit of $6,000. It was also estimated that the bad debts expense for the year would be 1% of the years credit sales of $5,000,000.

A. Assume that you want to inform the banking industry what your bad debt exposure will be, make the journal entry required on 12/31/18.

B. Assume that you want to inform the stockholders what your bad debt expense will be, make the required journal entry on 12/31/18.

C. On 3/12/19 Claireco was informed by their collection agency that $53,000 of their 2018 accounts receivable were uncollectable. Make the require journal entry on that date.

2. Itco Inc. uses the direct write off method to record its bad debt expense since they represent a very small portion of the total sales and accounts receivables. On 11/2/18 the company was informed by their collection agency that $6,000 in accounts receivables that had been outstanding for seven months would be uncollectible.

Required:Make the required Journal entry on 11/2/18.

3. Kenco Inc. uses the allowance method and an aged accounts receivable as the basis for writing off for bad debts. On 12/31/18 credit department estimated that of the balance in accounts receivables on 12/31/18 would amount to $225,000 for fiscal year 18. The balance in the Allowance for Bad Debts account was a debt of $25,000.