Chapter 8 Homework Providing for doubtful accounts At the end of the current year, the accounts receivable account has a debit balance of $1,453,000 and sales for the year total $20,340,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following assumptions: a. The allowance account before adjustment has a debit balance of $9,900. Bad debt expense is estimated at 3/4 of 1% of sales. b. The allowance account before adjustment has a debit balance of $9,900. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $21,240. c. The allowance account before adjustment has a credit balance of $7,500. Bad debt expense is estimated at 1/4 of 1% of sales. d. The allowance account before adjustment has a credit balance of $7,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $62,300. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet Round your answers to the nearest dollar a. $ b. $ C. $ d. $ A D E F G 1 DATA 1 Providing for doubtful accounts 2 3 4 Debit balance $1,453,000 5 Sales for the year $20,340,000 6 Using formulas and cell references, perform the required analysis, and input your answers into the Amount column. Transfer the numeric results for the green entry cells (D12, D17, D22, and D27) into 7 the appropriate fields in CNOWV2 for grading, 8 $9,900 3/4 Amount of 1% of sales Formula 15 $9.900 $21,240 Amount Formula 9 a Debit balance of the allowance account before adjustment 10 Bad debt expense is estimated at 11 12 Amount of the adjusting entry 13 14 b. Debit balance of the allowance account before adjustment Estimated allowance for doubtful accounts 16 17 Amount of the adjusting entry 18 19 c. Credit balance of the allowance account before adjustment 20 Bad debt expense is estimated at 21 22 Amount of the adjusting entry 23 24 d. Credit balance of the allowance account before adjustment Estimated allowance for doubtful accounts 27 Amount of the adjusting entry 28 29 30 31 $7,500 1/4 Amount of 1% of sales Formula 25 26 $7.500 $62,300 Amount Formula