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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

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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. $468.000 in sales revenue for the year, of which one-sixth was on account. 2. $2.340 credit balance in Allowance for Doubtful Accounts, as of December 31 of the prior year. 3. \$46,930 debit balance in Accounts Receivable as of December 31 of the current year (prior to any write-offs of uncollectible accounts during the current year). 4. \$2,730 in uncollectible 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 accounts receivable excluding amounts to be written off. a. Prepare the entry ro weite oft the uncolectible accounts: b. prepare the adjusting entry on December 31 to record bud debt expense for each of the following separate assurngtions conceming eapected bad dett ioss rates, Nate: treat each sifuation separately 1. bad debt expense is based on 1.5 \% of credit saies. 2. Allowatice for doubtlul sccounts is based on 2.5 . 6 of tokal receivaties at yearend. 3. Allowance for doubtul accounts is based on the followirg asmg schedule: Not part due ossar Fast fue 1 - 60 day. 1 W and ast due oyet if dayn. 6 \% 4. fat debt expetrise as based on the dired wete-oft method (assume ensry in part a has not been recorded. c. Prepare the balance theet isidowure shaweng accounts recelveble less the aliowance for dsubiful accounts for each assumption f through a crpart b. for ansumptich \& erity assume thece is a atrobarace in the allowance for doubthal accounts on December 31 of the nhor year - Nete: De nat yie necatwe signs with amy of your afiners. Pleath antiwet ald parts at

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