Golden Dome Enterprises sells a variety of products, primarily to other businesses.As of December 31, 2017 they had a balance of accounts receivable of $1,947,173 from credit sales of $9,852,698.For the year the company had Sales Returns and Allowances of $256,500 and provided Sales Discounts of $46,890.Before any adjusting entry for 2017 Bad Debt Expense, the Allowance for Doubtful Accounts had a credit balance of $32,344.

REQUIRED:

1.Record the December 31, 2017 adjusting journal entry to record bad debt expense assuming that Golden Dome uses the percentage of credit sales method and they estimate that 1.5% of net credit sales will not be collected.Determine the balances of the following AFTER the journal entry:Credit Sales, Sales Returns and Allowances, Sales Discounts, Accounts Receivable, Allowance for Doubtful Accounts, Bad Debt Expense, and the Net Realizable Value of Accounts Receivable.

2.Record the December 31, 2017 adjusting journal entry to record bad debt expense assuming that Golden Dome uses the aging method.An aging of their accounts receivable balance along with estimated uncollectible percentages as of December 31, 2017 is presented below.Determine the balances of the following AFTER the journal entry:Credit Sales, Sales Returns and Allowances, Sales Discounts, Accounts Receivable, Allowance for Doubtful Accounts, Bad Debt Expense, and the Net Realizable Value of Accounts Receivable.

Golden Dome Enterprises Selected Financial Information As of December 31, 2017 Balance Before Account Adjustments Credit Sales $9,852,698 Sales Returns and Allowances $256,500 Sales Discounts $46,890 Accounts Receivable $1,947,173 Allowance for Doubtful Accounts $32,344 Bad Debt Expense Percentage of Credit Sales Uncollectible 1.50% Balance AFTER Account Adjustments Credit Sales $9,852,698 Sales Returns and Allowances $256,500 Sales Discounts $46,890 Accounts Receivable $1,947,173 Allowance for Doubtful Accounts Bad Debt Expense Net Realizable Value of Accounts ReceivableGolden Dome Enterprises Selected Financial Information As of December 31, 2017 Balance Before Account Adjustments Credit Sales $9,852,698 Sales Returns and Allowances $256,500 Sales Discounts $46,890 Accounts Receivable $1,947,173 Allowance for Doubtful Accounts $32,344 Bad Debt Expense $0 Percentage of Credit Sales Uncollectible 1.50% Balance AFTER Account Adjustments Credit Sales $9,852,698 Sales Returns and Allowances $256,500 Sales Discounts $46,890 Accounts Receivable $1,947,173 Allowance for Doubtful Accounts Bad Debt Expense Net Realizable Value of Accounts ReceivableGolden Dome Enterprises Aging of Accounts Receivable As of December 31, 2017 Customer A/R 0-60 days 61-120 days Over 120 Customer Name Balance Current overdue overdue day's overdue Alumni Company $75,000 $15,000 $30,000 $15,000 $15,000 Breen-Phillips Corporation $12,000 53,600 $7,200 $1,200 SO Cavanaugh, Inc. $135,000 $81,000 $27,000 $13,500 $13,500 Dillon Enterprises $65,800 $13,160 $26,320 $13,160 $13,160 The Ed Company $46,385 $13,916 $27,830 $4,639 SO Farley Company 52.563 5256 $513 $1,538 5256 Golden Enterprises $11,458 $5,729 $3,437 $1,146 $1,146 The Howard Company $15,000 $4,500 $9,000 $1,500 SO Irish Corporation $3,658 $732 $1,462 5732 $732 Jordan Enterprises $11,598 $1,740 $3,479 $3,479 $2,900 Keenan, Inc. $225,890 $27,107 $54,214 $90,355 $54,214 Lewis Company $30,659 $3,679 $7,358 $12,264 $7,358 Morrissey Company $325,984 $52,157 $104,315 $114,095 $55,417 NDH Enterprises $145,200 $26,136 $52,272 $58,080 $8,712 O'Neill Company $259,806 $67,550 $135,099 $25,980 $31,177 Pasquerilla Inc. $112,589 $40,532 $22,518 533,777 $15,762 Queen of Glory Products $11,598 $8,118 $1,160 $1,160 $1,160 Ryan Hotels, Inc. $55,236 $16,570 $33,142 $5,524 SO Sigfried, Inc. $44.589 $6,688 $13,377 $22,295 $2,229 The Stadium Shops, Inc. $112,365 $13,485 526,968 $56,181 $15,731 Unparalleled Excellence, Inc. $48,965 $11,752 $23,503 59,793 $3.917 Victory Enterprises $23,756 $8,552 $7,127 $7,127 5950 Walsh Enterprises $41,589 $26,617 58,318 $6,654 50 X-cell Laboratories $6,895 $1,379 $2,758 $2,758 SO YouAllin Company $48,992 $15,677 $14,698 $14,698 53,919 Zahm, Inc. 574,598 544,758 $7460 514,920 $7,460 Total $1,947,173 $510,390 $650,528 $531,555 $254,700 Percentage Uncollectible 1.00% 2.50% 8.00% 18.00%