Providing for doubtful accounts

At the end of the current year, the accounts receivable account has a debit balance of $1,835,000 and sales for the year total $25,690,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following assumptions:

1. The allowance account before adjustment has a debit balance of $12,500. Bad debt expense is estimated at 1/4 of 1% of sales.
2. The allowance account before adjustment has a debit balance of $12,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $26,810.
3. The allowance account before adjustment has a credit balance of $8,000. Bad debt expense is estimated at 3/4 of 1% of sales.
4. The allowance account before adjustment has a credit balance of $8,000. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $66,400.

A.

b.

c.

d.