I tried to do some of the figures, but I am not sure if I am right. Thank you for any help.

Allowance Method of Accounting for Bad Debts-Comparison of the Two Approaches Romero Corp. had the following data available for 2017 (before making any adjustments): Accounts receivable, 12/31/17 $312,100 Allowance for doubtful accounts 2,600 850,000 Net credit sales, 2017 Required: Required: 1. Identify and analyze the adjustment to recognize bad debts under the following assumptions: (a) bad debts expense is expected to be 2% of net credit sales for the year. Activity Operating Accounts Allowance for Doubtful Accounts Increase, Bad Debts Expense Increase Statement(s) Balance Sheet and Income Statement Feedback How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. minus sign Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income Allowance for Doubtful Accounts 17,000 No Entry -17,000 Bad Debts Expense 17,000 -17,000 (b) Romero expects it will not be able to collect 6% of the balance in accounts receivable at year-end. Operating Activity Accounts Statement(s) Allowance for Doubtful Accounts Decrease, Bad Debts Expense Increase X Balance Sheet and Income Statement Feedback Check My Work In applying the percentage of accounts receivable to estimate bad debts expense, the balance already in the allowance account is used and the focus is on the balance sheet. Multiply uncollectible percentage by the ending balance in accounts receivable. The amount determined uncollectible will be the new ending balance for the Allowance for Doubtful Accounts. The change in the Allowance account is the bad debt expense. How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income Allowance for Doubtful Accounts -16,126 No Entry -16,126 Bad Debts Expense 16,126 -16,126 2. Assume instead that the balance in the allowance account is a negative $2,600. How will this affect your answers to part (1)? (a) bad debts expense is expected to be 2% of net credit sales for the year. Activity Operating Accounts Allowance for Doubtful Accounts Increase, Bad Debts Expense Decrease X Statement(s) Balance Sheet and Income Statement Feedback Cher Work Under the percentage of credit sales approach the emphasis is on the bad debts expense and income statement. The balance in the allowance account before adjustment is ignored. How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, ie, a decrease, be sure to enter the answer with Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. minus sign. Balance Sheet Income Statement Net Stockholders' Equity Assets Liabilities Revenues Expenses Income Featers (b) Romero expects it will not be able to collect 6% of the balance in accounts receivable at year-end. Activity Operating Accounts Allowance for Doubtful Accounts Decrease, Bad Debts Expense Decrease X Statement(s) Balance Sheet and Income Statement Feedback Check My Work The amount determined uncollectible will be the new ending balance for the Allowance for Doubtful Accounts. The change in the Allowance account is the bad debt expense. How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. Balance Sheet Income Statement Stockholders' Net Assets Liabilities + Equity Revenues Expenses Income