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please help me solve the following problem. i included the answer choices that are on part A, B and D Estimating and Recording Bad Debt

please help me solve the following problem. i included the answer choices that are on part A, B and D image text in transcribed
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Estimating and Recording Bad Debt Estimates and Write-Offs; Reporting of Accounts Receivable At December 31 , its annual year-end, the accounts of Sun Systems Inc, show the following. 1. $324,000 in sales revenue for the year, of which one-sixth was on account. 2. $1,620 credit balance in Allowance for Doubtful Accounts, as of December 31 of the prior year: 3. 532.490 debit balance in Accounts Receivable as of December 31 of the current year (prior to any write-offs of uncollectible accounts during the current year). 4,51,890 in uncollectible accounts to be written off as of December 31 of the current year. 5. Aging schedule at December 31 of the current year, showing the following breakdown of total accounts receivable excluding amounts to be written off. Prepare the entry to write off the uncollectible accounts. 9. Prepare the adjusting entry on December 31 to tecond bad debt expense for each of the following separate assumptions concerning expected bad debt loss rates. Note: Ireat coch situation separately. 1. Bad debt expense is based on 1.5% of credit sales. 2. Aliowance for doubeful accounts is based on 2.5\% of total receivables at year-end. 3. Allowarice for toubtful accounts is based on the following aging schedule: Net past due, 0.5\%; Past dive 160 days, 140 and Past due cvet 60 dayk, 8%. 4. Bad debt expense is based on the direct wite-aff method (assume entry in part a has not been recorded). c Prepare the balance shee disclosure showing accounts receivable less the allowance for doubtiul accounts for each assumption 1 through 4 of part bi for astumptian 4 only assume there h a zero balance in the allowance for doubtul accounts on Decpmber 31 of the peior year: d. For reporting purposes in looking at part b. what is one limitation when using assumption 1 and when using assumption 4 . - Notet Do not use negative signs with any of yout answers. - Note: Do not use negative signs with any of your answers. Limitation of Assumption 1 Limitation of Assumption 4

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