Blue Skies Airways had the following items and amounts in its unadjusted trail balance as of December 31 of the current year:

	Debit	Credit
Cash Sales		$188,000
Credit Sales		275,000
Accounts Receivable	$76,000
Allowance for Doubtful Accounts		1,000

Answer the following questions:

1. Assuming the bad debts are estimated to be 1.5% of credit sales, what is the amount of the estimated bad debt expense?

2. Prepare the journal entry to record the bad debt expense calculated in question 1:

	Debit	Credit

3. Assuming the bad debts are estimated to be 1.8% of total sales, what is the estimated amount of the bad debt expense?

4. Prepare the journal entry to record the bad debt expense calculated in question 3.

	Debit	Credit

5. Assuming the bad debts are estimated to be 2% of accounts receivable, estimate the amount of the bad debt expense.

6. Prepare the journal entry to record the bad debt expense calculated in question 5.

	Debit	Credit