Sprinkle Company has accounts receivable of $700,000 at June, 2020. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The companys estimate of bad debts is as follows.

Months of credit sale	Balance June 30
March	$12,000
April	$10,000
May	$30,000
June	18,000

The companys estimate of bad debts is as respectively 75%, 30%, 15% & 7%. (i) Calculate bad debt expense for Sprinkle company for the year 2020. (ii) Sprinkle company has balance of allowance for doubtful accounts of previous year $40,000. Determine the amount of allowance for doubtful accounts to be kept this year. (iii) Pass journal entry. (iv) Determine Net Realizable value of Receivables.