On the year end of July 31, 2018, Rainbow Appliances had the following account balances before adjustments for bad debt was made. Net Credit Sales for the period $1,237,000 CR Accounts Receivable AFDA $736,000 DR $1,900 CR 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 2% $516,000 31-60 days 4% $100,000 61-90 days 13% $70,000 91-120 days 28% $34,000 Over 120 days 57% $16,000 Total $736,000 Prepare the journal entry to record bad debt expense for the year: ; Date Jul 31 Account Title and Explanation Debit Credit To record bad debt expense. b) Assume instead that Rainbow Appliances used the income statement approach for estimating bad debt. If historical data indicates 61-90 days 13% $70,000 91-120 days 28% $34,000 Over 120 days 57% $16,000 Total $736,000 Prepare the journal entry to record bad debt expense for the year: Date Account Title and Explanation Jul 31 Debit Credit 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 1% of net credit 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