Estimating and Recording Bad Debt Estimates and Write-Offs; Reporting of Accounts Receivable At December 31, its annual year-end, the accounts of Sun systems inc, show the following: 1. 5324,000 in sales revenue for the year, of which one-sixth was on account, 2. 51.620 credit balance in Allowance for Doubtful Accounts, as of December 31 of the prior year. 3. 532.490 debit balance in Accounts Receivabie as of December 31 of the current year (prior to any write-offs of uncollectible accounts during the current year). 4.51,890 in uncollecuble accounts to be written off as of December 31 of the current year. 5. Aging schedule at December 31 of the current year, showing the following breakdown of total acrounts receviable excluding amounts to be written off. Required a. Prepare the entry to write off the uncollectible accounts. b. Prepare the adjusting entry on December 31 to record bad debt expense for each of the following separate assumptions conceming expected bad debt loss rases. Nofe Treat. tach situation separately? 1. Bad debt expensels based on 1.5 th ol credit sales. 2. Allowance for doubtful accounts is based on 25% of total receivablet at year end. 3. Allowance for doubtiul accounts b based on the following oging scheduei Not past dve, 0.56, Past due 160 day $1 1., and Past due over 60 dayh 85 . 4. Bad debtexpense is based an the direct wi ite-off method fossume entry in part a has not been recortdedf assume thete is a zero balance in the allowance for dowbeful sccounts on December 3 t of the priotyear each situotion separately. 1. Bad debt expense is based on 1.5% of credit sales. 2 Alowance for doubthul accounts is based on 2.5 se of totol teceivables at yeorend. 3. Allowance for doubtiul accounts is based on the following agings chedule: Not past due, 0.5. Past due 160 days, 144 and Past due over 60 days, 8%. 4. Bad debt expense is based on the direct write-off method (assume entry in part a has not been recardedi. c. Prepare the balance shect disciosure showing accounts recevable less the allowance for doubtful accounts for each ossumption 1 through 4 af part bi for assumption 4 only, assume there is a zero balance in the allowance for doubtful accounts on December 31 of the priokyear. d. For reporting purposes in looking at part b, what is onel mitatiot when using assumption 1 and when wing assumption 4 ? - Note: Do not use negative signs with any of your answers