REGINNING BALANCE FOR ACCOUNTS RECEIVABLE @ JAN 1, 2008 IS $100,000 $600,000 $400,000 SALES ON ACCOUNT FOR 2008 ON ACCOUNT ARE CASH RECEIPTS FROM CUSTOMERS IN 2008 BEG BAL FOR ALLOWANCE FOR DOUBTFUL ACCTS @ 1/1/2008 WRITE OFFS FOR THE YEAR $2,000 CREDIT $10,000 THE RESERVES FOR BAD DEBTS IS BASED ON 2% OF THE ENDING BALANCE FOR ACCOUNTS RECEIVABLE @ DEC 31, 2008 MAKE THE APPROPRIATE JOURNAL ENTRY TO SET UP THE PROPER RESERVE AT 12/31/2008 WHAT ARE THE ENDING BALANCES @DEC 31, 2008 FOR: ACCOUNTS RECEIVABLE ALLOWANCE FOR DOUBTFUL ACCOUNTS BAD DEBT EXPENSE ALLOWANCE FOR DOUBTFUL ACCOUNTS BAD DEBT EXPENSE #2 A/ R BALANCE @ 12/31/2008 $500,000 MAKE THE REQUIRED ENTRIES TO SET UP RESERVE FOR BAD DEBT IS 6% OF THE ENDING A/R BALANCE THE RESERVE FOR CASE 1 EACH CASE ALLOW FOR DOUBTFUL ACCTS BAL @ 12/31/2008 CASE 2 ALLOW FOR DOUBTFUL ACCTS BAL @ 12/31/2008 10,000 CREDIT CASE 3 ALLOW FOR DOUBTFUL ACCTS BAL@12/31/2008 10,000 DEBIT