. Prepare the adjusting entry for Ingleton Co, to recosnize bad debts under epare the adjusting entry for Ingleton Co. to recognize bad de pendent assumptions. Bad debts are estimated to be 2.5% of credit sales. b. Bad debts are estimated to be 1.5% of total sales ber 31, C. An aging analysis estimates that 6% of year-end accounts 2. Show how Accounts Receivable and the Allowance for Dotu year-end accounts receivable are uncollectible Doubtful Accounts appear on its Decem 2018, balance sheet given the facts in part la. ounts appear on its December 31 3. Show how Accounts Receivable and the Allowance for Doubtfu 2018, balance sheet given the facts in part Ic. of $4,500,000 for year 2018. At December 31, 2018, the company's uAccounts has an unadjusted debit balance of $3,400. Hovak prepares a schedule accounts receivable by age. On the basis of past experience, it estimates the age category that will become uncollectible. This information is summa- has credit sales Hovak Company of its December 31, 2018, rized here. t of receivables in each that will Expected Percent Uncollectible December 31, 2018, Age of Accounts Receivable $396,400 277,800 48,000 6,600 2,800 2 Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due 4 5 6 4.0 8.5 39.0 82.0 Required 1. Compute the required balance of the Allowance for Doubtful Accounts at December 31, 2018, using the aging of accounts receivable method. 2. Prepare the adjusting entry to record bad debts expense at December 31, 2018. Analysis Component 3. On July 31, 2019, Hovak concludes that a customer's $3,455 receivable (created in 2018) is uncolleo ible and that the account should be written off. What effect will this action have on Hovak's 2019 r income? Explain