The A.T. Cross Company is well known for its Cross pens. The company recently reported the following amounts in its unadjusted trial balance as of December 31.

	Debits		Credits
Accounts Receivable	$	30,691,000
Allowance for Doubtful Accounts			$	952,000
Sales Revenue				158,312,000

Required:

1. & 2.

Prepare the adjusting journal entry required at December 31 for recording Bad Debt Expense. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

(i) Assume Cross uses of 1 percent of sales to estimate its bad debt expense for the year.

TIP: The percentage of credit sales method directly calculates Bad Debt Expense.

(ii) Assume instead that Cross uses the aging of accounts receivable method and estimates that $1,007,000 of Accounts Receivable will be uncollectible.

TIP: The aging of accounts receivable method focuses on calculating what the adjusted Allowance for Doubtful Accounts balance should be. You need to consider the existing balance when determining the adjustment.

.

Assume instead that Cross uses the aging of accounts receivable method and estimates that $1,007,000 of Accounts Receivable will be uncollectible and unadjusted balance in Crosss Allowance for Doubtful Accounts at December 31 was a debit balance of $10,050. Prepare the adjusting journal entry required at December 31 for recording bad debt expense. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Assume instead that Cross uses the aging of accounts receivable method and estimates that $1,007,000 of Accounts Receivable will be uncollectible and unadjusted balance in Crosss Allowance for Doubtful Accounts at December 31 was a debit balance of $10,050. Prepare the adjusting journal entry required at December 31 for recording bad debt expense. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

	If one of Crosss main customers declared bankruptcy, what journal entry would be used to write off its $10,000 balance? (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)