Kelly Green Corp. uses the allowance method for handling receivables. Total Sales for the year were $$1,450,000.$ The unadjusted balance for Accounts Receivable was is $$170000$ debit balance and Allowance for Doubtful Accounts $$3,700$ credit balance. Note: Situations A and $C$ are independent of each other $($Hint: use the Account List $-$ click to pop open to help you with your journal entries$).$

a$)$ Prepare the Dec $31$ adjusting entry assuming Kelly Green uses the percent of sales method for bad debts Kelly estimates $2\%$ of total sales will be uncollectible.

$\backslash$table$[[$Date$,$Description,Debit,Credit$],[$Dec $31,,,]]$

b$)$ Show how you calculated Bad Debt Expense in the box below:

$$

c$)$ Prepare the Dec $31$ adjusting entry assuming Kelly Green uses the percent of accounts receivable metho for estimating uncollectible accounts. Kelly estimates $8\%$ of accounts receivable will be uncollectible.

Date

Description

Debit

Credit

Dec $31q,$

$$

d$)$ Show how you calculated Bad Debt Expense in the box below:

$$