The BLANKENSTEIN & SOBA (BS) Company has had trouble collecting all of their accounts receivable in prior years. The credit department has prepared an aging schedule showing the likelihood of collecting different groups of receivables. This schedule applies for the year ended 12-31-19. This information is based on past history Accounts Months Percentage Deemed Receivable Outstanding Collectible $35,000 3 months 90% The current balance in the Allowance for Bad Debts account is a $2,600 DEBIT. REQUIRED: 1. Using the aging of AR method, compute the amount of bad debt expense for 2019 and record the proper adjusting entry. Show all computations clearly!!! Complete the account below: BAD DEBT EXPENSE COMPUTATION: Allowance for Bad debts ENTRY: DR: CR: 2. Show how the AR section of the Balance Sheet would appear at 12-31-19 after taking into account the 2019 adjusting entry in part (1) Balance Sheet 3. 4 Assume the BS Company estimates bad debts to be 3 % of NET sales instead of using the aging method. Compute the bad debt expense if total sales are $425,000 and sales returns are $3,000 and sales discounts are $2,000 for the 2019 year. Assume all other information is the same as previously reported. a. bad debt expense for 2019. No journal entry is required here! b. Show how the AR section of the Balance Sheet would look at 12-31-19 after the adjustment is made for the bad debt expense under the net sales approach instead of the aging method. Assume all other information is the same as previously reported. This means the previous balance in the Allowance for Bad Debts is still a debit of $2,600. Completing the "T" account below will help you set up the BS section. Balance Sheet Allowance for Bad Debts $2600