Short-term investments and receivables (14 marks)

Prepare the journal entries to estimate bad debt expense for the following independent situations

1. The Allowance for Uncollectible Accounts has a $700 credit balance prior to adjustment. Net credit sales during the year are $425,000 and 4% are estimated to be uncollectible.

1. The Allowance for Uncollectible Accounts has a $400 debit balance prior to adjustment. Based on an aging schedule of accounts receivable prepared on December 31, $11,800 of accounts receivable are estimated to be uncollectible.

1. The Allowance for Uncollectible Accounts has a $900 credit balance prior to adjustment. Based on an aging schedule of accounts receivable prepared on December 31, $14,500 of accounts receivable are estimated to be uncollectible.

1. The Allowance for Uncollectible Accounts has a $300 debit balance prior to adjustment. Net credit sales during the year are $550,000 and 3% are estimated to be uncollectible