The following data is for TJ Company on December 31, 2021, before any adjustment. They utilize the Percent of Accounts Receivable Method for estimating bad debt expense.

Balance of Accounts Receivables $855,000

Balance in Allowance for Doubtful Accounts $2,500 (Cr)

Past experience suggests that 4% of receivables are uncollectible.

1. What is the desired balance in Allowance for Doubtful Accounts? (5 points)
2. What is Bartons Bad Debts Expense for 2021? (5 points)
3. Prepare the journal entry to estimate bad debt expense. (5 points)