On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jarden prepares a schedule of its December 31 accounts receivable by age.

Accounts Receivable	Age of Accounts Receivable	Expected Percent Uncollectible
$ 900,000	Not yet due	1.35%
360,000	1 to 30 days past due	2.10
72,000	31 to 60 days past due	6.60
36,000	61 to 90 days past due	33.25
14,400	Over 90 days past due	69.00

Problem 7-3A (Algo) Part 1

Required:

1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable.

2. Prepare the adjusting entry to record bad debts expense at December 31.

3. On June 30 of the next year, Jarden concludes that a customers $5,850 receivable is uncollectible and the account is written off. Does this write-off directly affect Jarden's net income?