Net Zero Products, a wholesaler of sustainable raw materials, estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis.

				Days Past Due
	Total			0			1 to 30				31 to 60				61 to 90				Over 90
Accounts receivable	$	115,200		$	80,000			$	18,000			$	7,200			$	4,000			$	6,000
Percent uncollectible					1	%			3	%			5	%			8	%			11	%

a. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method.

b. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,000 credit.

c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $100 debit.

Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method.

	Estimated balance of allowance for doubtful accounts		credit

No	Date	General Journal	Debit	Credit
1	Dec. 31	Bad debts expense
		Allowance for doubtful accounts
2	Dec. 31	Bad debts expense
		Allowance for doubtful accounts