DBs Doughnuts creates delicious up-scale pastries for different events in the Tampa Bay area, and makes all sales on credit. As of December 31^st, 2020, the companys sales information and accounts receivable information is as follows (normal balances before adjustments):

Accounts receivable $365,000

Allowance for Doubtful Accounts $12,000

1. DBs Doughnuts currently estimates that 12% of its accounts receivable will be uncollectible. Calculate and prepare the adjusting entry for the companys bad debt expense as of 12/31/20.

DATE	ACCOUNT	DEBIT	CREDIT

DBs Doughnuts controller decided to re-evaluate the bad debt adjustment, and prepared an aging of the accounts receivable account as follows:

Accounts Receivable Aging	Amount	% Deemed Uncollectible
0-30 days old	$150,000	2%
31-60 days old	$136,000	10%
61-90 days old	$56,500	25%
Over 90 days	$23,000	85%

2. Calculate and prepare the adjusting entry for the companys bad debt expense as of 12/31/20 (using the new approach, of aging the accounts receivable)

3. Using the new approach, what is the companys net realizable value of receivables?