Calculate the Bad Debt Expense, the Ending Balance of Allowance for Doubtful Account, and the Net Book Value of Accounts Receivable

B. AIR and Bad Debt Expense Grapevine Company has the following information available as of December 31, 2003: Total Accounts 1-30 31-60 61-90 Over 90 Receivable M mys M M $90,000 $56,500 $17,500 $14,000 $2,000 Total credit sales for the year ended December 31, 2003, were $700,000. On the unadjusted trial balance, the balance in the Allowance for Doubtful Accounts at December 1, 2003, was a $900 duebit. During December 2003, the company wrote off as uncollectible accounts receivable of $1,800. However, one of the accounts written off as uncollectible in the amount of $300 was recovered before the end of the current period. (Hint: Review how the T-account of ADA works!) The estimated bad debts percentages are as follows: as a percentage of credit sales 2% as a percentage of aging accounts receivable: 1-30 days 3% 31-60 days 10% 61-90 days 40% Over 90 days 75% Required: 1. Calculate the Bad Debt Expense, the Ending Balance of Allowance for Doubtful Account, and the Net Book Value of Accounts Receivable (i.e., Net Amount of AR Expected to be Collected) as of December 31, 2003 under (i) Percentage of Sales method and (ii) Aging of Accounts Receivable method. Show your calculations. 2. Provide journal entry to record the accounts write-off $1,800 made during the year 2003. 3. What is the impact of writing-off of $1,800 during the year on: Gross Accounts Receivable Allowance for Doubtful Accounts E Book Value of Accounts Receivable Net Income 999*