Journalize the appropriate entries for bad debt expense and payments, if any, for each independent scenario:

1. On June 30 (the end of the period), Brown Company has a credit balance of $2,275 in Allowance for Doubtful Accounts. Credit sales were $5,000,000 for the period. Accounts receivable balance was $520,000. Assume Brown Company calculates bad debt expense using the percentage of sales method and estimates uncollectible amounts as of 1% of total credit sales.
2. On June 30, Brown Company had credit sales were $500,000 for the period. Accounts receivable balance was $20,000. Brown Company determined that Blue Companys accounts receivable account which made up 50% of the accounts receivable balance was uncollectible and wrote-off the uncollectible amount on June 30 under the direct write-off method. Blue Company made a $5,000 payment on the written off account on August 1.

Complete your answers in the downloaded excel file and upload using the upload to Problem 24 using the Upload file button once you complete problems 24, 25, 26 and 27 in the Excel file (each problem is on a different tab).