Providing for Doubtful Accounts

At the end of the current year, the accounts receivable account has a balance of $703,000 and sales for the year total $7,970,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following independent assumptions:

a.The allowance account before adjustment has a negative balance of $(9,500). Bad debt expense is estimated at 3/4 of 1% of sales.

b.The allowance account before adjustment has a negative balance of $(9,500). An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $30,400.

c.The allowance account before adjustment has a positive balance of $5,500. Bad debt expense is estimated at 1/4 of 1% of sales.

d.The allowance account before adjustment has a positive balance of $5,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $45,700.