Providing for Doubtful Accounts

At the end of the current year, the accounts receivable account has a balance of $$1,251,000$ and sales for the yearr total $$14,180,000.$

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 $$(16,900).$ Bad debt expense is estimated at $\frac{3}{4}$ of $1\%$ of sales.

$x$

b$.$ The allowance account before adjustment has a negative balance of $$(16,900).$ An aging of the accounts in the customer ledger indicates estimated doubtful accounts of

$$54,100.$

c$.$ The allowance account before adjustment has a positive balance of $$6,700.$ Bad debt expense is estimated at $\frac{1}{2}$ of $1\%$ of sales

d$.$ The allowance account before adjustment has a positive balance of $$6,700.$ An aging of the accounts in the customer ledger indicates estimated doubtful accounts of

$$55,600.$

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a$-$d$.$ Under the percent of sales method, Bad Debt Expense is the focus of the estimation process. Multiply net sales by the estimated uncollectible percentage. This

is the amount of the adjustment to Bad Debt Expense.