The account balances of Crane Company at December 31, 2021, the end of the current year, show Accounts Receivable $219,600; Allowance for Doubtful Accounts $2,700 (credit); Sales $1,731,400; Sales Returns and Allowances $60,000; and Sales Discounts $24,400.

Record the adjusting entry at December 31, 2021, assuming bad debts are estimated to be (1) 10% of accounts receivable, and (2) 1.5% of net sales. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

No.	Date	Account Titles and Explanation	Debit	Credit
(1)	Dec. 31	enter an account title to record estimate of uncollectible accounts on December 31	enter a debit amount	enter a credit amount
		enter an account title to record estimate of uncollectible accounts on December 31	enter a debit amount	enter a credit amount
		(To record estimate of uncollectible accounts.)
(2)	Dec. 31	enter an account title to record estimate of uncollectible accounts on December 31	enter a debit amount	enter a credit amount
		enter an account title to record estimate of uncollectible accounts on December 31	enter a debit amount	enter a credit amount
		(To record estimate of uncollectible accounts.)

Calculate the carrying amount of the accounts receivable for each approach to estimating uncollectible accounts in part (a) above.

(1)	Carrying amount		$enter a dollar amount
(2)	Carrying amount		$enter a dollar amount

Assume instead that the Allowance for Doubtful Accounts had a debit balance of $3,200 at December 31, 2021. What is bad debt expense for 2021, and what is the carrying amount of the accounts receivable at December 31, 2021, assuming bad debts are estimated to be (1) 10% of accounts receivable, and (2) 1.5% of net sales?

		(1)		(2)
Bad debts expense		$enter a dollar amount		$enter a dollar amount
Carrying amount		$enter a dollar amount		$enter a dollar amount