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Sammy's Sweets has a December 31, 2020 year end. The unadjusted trial balance included the following items: Credit Account Accounts Receivable (AR) Allowance for Doubtful

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Sammy's Sweets has a December 31, 2020 year end. The unadjusted trial balance included the following items: Credit Account Accounts Receivable (AR) Allowance for Doubtful Accounts (AFDA) Sales ($3,200,000 cash sales) Debit $1,500,000 $46,000 $11,950,000 During the year, the company had returns of $78,000, half of which were due to credit sales. These numbers are NOT included in the numbers above. DO NOT ADD COMMAS OR DOLLAR SIGNS TO YOUR ANSWERS. IF THE ANSWER IS $25,000 YOU WILL RECORD IT AS 25000 REQUIRED: PART 1 Blank 1) What would be the Bad Debts Expense recorded at Dec 31, 2020 if bad debts are estimated to be 2% of net credit sales? Blank 2) What would be the ending balance on Dec 31, 2020 in the AFDA account, given the above adjustment? PART 2 - RETURN TO THE ORIGINAL DATA AND IGNORE PART 1: Blank 3) What would be the Bad Debts Expense recorded at Dec 31, 2020 if 4% of outstanding AR are expected to become uncollectable at that date? Blank 4) What would be the ending balance on Dec 31, 2020 in the AFDA account, given the above adjustment

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