The company had credit sales of $110,000 for the calendrer period 2021. 

Accounts receivable at the beginning of the year was $25,000. $90,000 was collected during 2021.

The allowance for doubtful accounts totals at the beginning of the year was $1800. 

$ 1500 of accounts receivable were written off during the year as uncollectible. Assuming:

1. Required
2. 1. The company estimates the allowance for bad debts to be 2% of credit sales, what is the year end adjusting entry? 
3. 2. Prepare the end of year 2021 accounts receivable and allowance for uncollectible accounts balances.
4. 3. The company estimates that 10% of ending accounts receivables will not be collected, . What is the year-end adjusting entry to record the bad debt expense? 
5. 4. Prepare the end of year 2021 accounts receivable and allowance for uncollectible accounts balances.
6. 5.Would your answer be different if the company utilized the direct write off method?
7. If so, how? Record the accounting entry.
8. 6. Prepare the end of year 2021 accounts receivable and allowance for uncollectible accounts balances
9. 7. Which approach is correct?