Jim's Lawn Care CH 8 AR & Allowance 1. At the end of the current year, Accounts Receivable has a balance of $9,000 Allowance for Doubtful Accounts has a credit balance of $85; and net sales for ar total $30,000. Bad debt expense is estimated at .5% of net sales. a. Using the Percent (%) of Sales Method - Determine the appropriate adjusting joumal entry to record the Bad Debt Expense (Show your calculations): Write the adjusting journal entry on the journal below: Post Date Description Ref Debit Credit b. Determine the adjusted balances in the following accounts after the above journal entry has been made: (Show your calculations): Accounts Receivable: Allowance for Doubtful Accounts: Bad Debt Expense: What is the net realizable value of accounts receivable? (Show your calculations): 2. An aging of the accounts receivable on December 31, and a historical analysis of the percentage of the uncollectible accounts for the industry in each age category are as follows: Percent Uncollectible X2 Age Interval Not past due 1-30 days past due 31 -60 days past due 61-90 days past due 91 - 180 days past due Over 180 days past due Balance $57,000 5,000 2,000 2,500 1.000 500 3 7 15 40 1 75 a) Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31. (Show your calculations) circle your answer b) Assuming that the allowance for doubtful accounts had a debit balance of $145 as of December 31, journalize the adjusting entry for uncollectible accounts as of December 31. (Show your calculations): Date Description Post Ref Debit Credit 21 Pago