Planeto uses the aging method (percentage of accounts receivable) for recording the adjustment for bad debt expense. At December 31 (THE END OF THE YEAR), Planeto Inc. has Accounts receivable of $362000. $280000 of Accounts Receivable are current; $82000 of Accounts Receivable are over 120 days old. Planeto has found that historically 1% of current accounts and 5% of accounts over 120 days old are uncollectible. Planeto has a $840 credit balance in the Allowance for Uncollectible Accounts before the 12/31 adjusting entry. 1) What will be the balance in the allowance account on the balance sheet? (It is a credit balance, which is a normal balance, so enter as a positive number here even though it is a negative asset in the accounting equation.) 2) How much bad debt expense will Planeto, Inc. recognize for the year ended 12/31? 3) What is the net realizable value of Planeto's accounts receivable on the balance sheet? Hint: Always do these out in the equation or in t-accounts. With the % of Accounts Receivable method, this is the setup: Assets Liab. Equity Accounts Receivable Allowance for Doubtful Accounts RE Unadj. Bal. 362000 - 840 Adjustment End. Bal. % of AR method gives you this number. The adjusted balance must be a negative asset