Dell software recently reported the following amounts in its unadjusted trial balance at its year-end:

Debits Credits

Accounts Receivable $ 2,800

Allowance for Doubtful Accounts $21

Sales (assume all on credit) 42,000

Prepare the adjusting journal entry required for the year.

1. Assume Dell uses 3/4 of 1 percent of sales to estimate its Bad Debt Expense for the year.

2 Assume instead that Dell uses the aging of accounts receivable method and estimates that $78 of its Accounts Receivable will be uncollectible.

3. Assume instead that Dell uses the aging of accounts receivable method and estimates that $78 of its Accounts Receivable will be uncollectible. Prepare the year-end adjusting journal entry for recording Bad Debt Expense. Also, assume Dell's year-end unadjusted balance in Dells Allowance for Doubtful Accounts was a debit balance of $39.

4. If one of Dell's main customers declared bankruptcy after year-end, what journal entry would be used to write off its $10 balance?