Question #3: Bad Debts (A/R) Skywalker Products is unsure of which method to use for accounts receivable uncollectibles. On December 31, 2022, the balance in Accounts Receivable was $650,000 and net sales amounted to $3,500,000. An ageing analysis of the accounts receivable indicated that $15,500 in accounts are expected to be uncollectible. Past experience has shown that about 1% of net sales eventually are uncollectible. Prepare the adjusting entries to record estimated bad debts expense using the (1) percentage of sales basis and (2) the percentage of receivable basis under each of the following independent assumptions: Allowance for Doubtful Accounts has a credit balance of $3,200 before adjustment. Allowance for Doubtful Accounts has a debit balance of $730 before adjustment (a) (b) Calculations: DATE GENERAL JOURNAL PARTICULARS PR A/R 650000 Net Sales 3 500 000 DEBIT Page CREDIT

Question t3: [T-d Debts (A/R) 5kywalker Products is unsure of which method to use for accounts recelable uncollectibles. On December 31, 2022, the balance in Accounts Acceivable was $650,000 and net sales amounted to $3,500,000. An ageing analyals of the accounts recelvable indicated that $15,500 in accounts are expected to be uncollect ble. Past experlence has shown that about 115 of net sales eventually are uncallectibie. Prepare the adjusting entries to record estimated bed deats expense using the (1) percentage of sales bass and (2) the percentage: of receivable basis under each of the following independert assumptions: (a) Allowance for Doubtful Accounts has a credit balance of $3.200 before adiustment: (b) Allowance for Doubtful Accounts has a debit balance of 5730 before adfustment ut 5 . 353500500 Calculations