Novakowski Products needs to prepare their year$-$end financial statements. On

December $31,2021,$ the balance in Accounts Receivable was $$680,000.$ An aging

analysis of the accounts receivable indicated that $$16,500$ of the accounts

receivable is expected to be uncollectible.

Instructions

Prepare the adjusting entries to record estimated bad debt expense using the

a$)$

percentage of

receivables approach for each independent assumption:

Allowance for Doubtful Accounts has a credit balance of $$3,200$ before

i$)$

adjustment.

Allowance for Doubtful Accounts has a debit balance of $$730$ before

ii$)$

adjustment.

b$)$

Determine the carrying amount of the accounts receivable at December $31,$

$2021$ after the

required adjustments under each assumption.