Practice Problems (Chapters 4-10 (excl. 7)) Question The following information pertains to the accounts receivable of Bauer Corporation for the year ended December 31: 1. Net sales: $1,500,000 2. A recent study shows that the industry's uncollectible accounts expense over the past few years is approximately 1 percent of its total net sales. The company is considered one of the most representative companies in the industry. 3. Balance in the Allowance for Uncollectible Accounts: $1,500 (credit) before any adjustments. 3. Accounts receivable aging schedule: Number of Days Outstanding 1-30 31-60 61-90 91 and over Total Percentage Considered Uncollectible 0% 20% 35% 50% Total Estimated Uncollectible Accounts Receivable $70,000 40,000 20,000 9,000 139,000 $8,000 7,000 4,500 19,500 Required: 1. Prepare a journal entry to record the uncollectible accounts expense assuming the percentage of sales method is used. 2. Prepare a journal entry to record the uncollectible accounts expense assuming the aging of receivables method is used