On the year end of April 30, 2018, Rainbow Appliances had the following account balances before adjustments for bad debt was made. Net Credit Sales for the period $1,220,000 CR Accounts Receivable $603,000 DR AFDA $4,000 DR Do not enter dollar signs or commas in the input boxes. a) Use the year-end balances reported on the balance sheet and the aging schedule shown below to calculate the allowance for doubtful accounts. Aging Category Bad Debt % Balance Estimated Bad Debt Less than 30 days 1% $338,000 31-60 days 3% $149,000 I 61-90 days 11% $69,000 91-120 days 23% $27,000 Over 120 days 46% $20,000 Total $603,000 Prepare the journal entry to record bad debt expense for the year Date Debit Credit Account Title and Explanation Bad Debt Expense |Apr 30 Allowance for Doubtful Accounts Contact us! To record bad debit expenso Total $603,000 Prepare the journal entry to record bad debt expense for the year: Date Debit Credit Account Title and Explanation Bad Debt Expense Apr 30 Allowance for Doubtful Accounts To record bad debt expense b) Assume instead that Rainbow Appliances used the income statement approach for estimating bad debt. If historical data indicates that approximately 2% of net creflit sales are uncollectible, what amount is expected to be uncollectible? Uncollectible amount Using the information provided at the beginning of the question, what is the balance in the allowance for doubtful accounts after the adjustment using the income statement approach? Allowance for doubtful accounts