E7-7 (LO3) Recording Bad Debs) Duncan Company reports the following financial information Cr. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) Sales Returns and Allowances s 2.000 50,000 bad debts at (a) 5% of accounts Prepare the jourmal entry to record Bad Debt Expense assuming Duncan Company estimates receivable and (b) 5% of accounts receivable but Allowance for Dou ibtful Accounts had a $1,500 debit balance. Recording Bad Debts) At the end of 2017, Aramis Company has accounts receivable of $800,000 and an allow- accounts of $40,000. On January 16, 2018, Aramis Company determined that its receivable from Ramirez ance for doubtful Company of S6,000 will not be collected, and management authorized its write-off Instructions (a) Prepare the journal entry for Aramis Company to write off the Ramirez receivable. (b) What is the net realizable value of Aramis Company's accounts receivable before the write-off of the Ramirez receivable? c) What is the net realizable value of Aramis Company's accounts receivable after the write-off of the Ramirez receivable? adiustment of Taylor Swift Inc