Richard the bookkeeper for a small bookstore prepared an unadjusted trial balance as shown below:

Accounts receivable	$120
Notes receivable, trade	20
Allowance for doubtful accounts		2
Sale revenue		$1,040
Returned sales	30
Purchases	500
Purchase returns and allowances		20
Retained earnings		1,570

Prepare the appropriate entries indicated below. Each item is independent. (a) Record bad debt expense, assuming company experience indicates that 40 percent of sales are on account and 2 percent of net credit sales prove uncollectible. (b) Record bad debt expense if an aging schedule indicates that $10 of the receivable at the end of this year will not be collected. (c) Record bad debt expense if company policy requires the allowance for doubtful accounts be maintained at 5 percent of total trade receivables. (d) In April, four accounts totaling $5 were in excess of 90 days old and were determined by the collection department to be uncollectible. (e) In May of the year, one of the accounts written off in (d) was paid in full in the amount of $2.