Stavros Company uses the aging method (percentage of accounts receivable) for recording the adjustment for bad debt expense. At December 31, Stavros Company has $280000 of Accounts Receivable that are current and $75000 of Accounts Receivable that are over 120 days old. Stavros Company has found that historically 2% of current accounts and 8% of accounts over 120 days old are uncollectible Stavros Company has a $1510 debit balance in the Allowance for Uncollectible Accounts before the 12/31 adjusting entry. 1) What will be the balance in the allowance account on the balance sheet?(It is a credit balance, which is a normal balance, so enter as a positive number here even though it is a negative asset in the accounting equation.) 2) How much bad debt expense will Stavros Company recognize for the year ended 12/31? 3) What is the net realizable value of the accounts receivable on the balance sheet? Hint: Always do these out in the equation or in t-accounts. With the % of Accounts Receivable method, this is the setup: Assets Equity Liab. Allowance for Doubtful Accounts Accounts RE Receivable Unadj. Bal 355000 1510 Adjustment % of AR method gives you this number. It must be a negative asset after adjustment. End. Bal