Question 6.(12 points)

At the end of the fiscal 2015 year , Alpha Company has the following information: credit sales, $2,500,000; Sales Returns and Allowances, $25,000; Accounts Receivable, $200,000; and Allowance for Doubtful Accounts with a Debit, $1,500

a. if Alpha uses 0.5% of Net Credit Sales as the basis for determining Bad - Debit Expense. What amounts should Alpa Company report at December 31, 2016 for

1. Allowance for Doubtful Accounts Balance...........

2. Bad Debt Expense .........

b. If Alpha uses 5% of Accounts Receivable as the basis for determining Bad-Debt Expense. What amounts should Alpha Company report at December 31, 2016 for

3. Allowance for Doubtful Accounts Balance........

4. Bad Debt Expense.......