Providing for Doubtful Accounts

At the end of the current year, the accounts receivable account has a debit balance of $1,400,000 and sales for the year total $15,350,000.

a. The allowance account before adjustment has a debit balance of $23,000. Bad debt expense is estimated at of 1% of sales.

b. The allowance account before adjustment has a debit balance of $23,000. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $125,000.

c. The allowance account before adjustment has a credit balance of $14,500. Bad debt expense is estimated at of 1% of sales.

d. The allowance account before adjustment has a credit balance of $14,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $180,000.

Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above.

a.____

b.____

c.____

d.____