The following information is available for Natures Best Corporation about the age of its receivables at December 31, its year end:

Number of days outstanding 0-30 31-60 61-90 Over 90

Accounts Receivable $400,000 $240,000 $200,000 $80,000

Estimated percentage uncollectible 3% 5% 10% 15%

Required:

(a) Using the above aging schedule, determine the total estimated uncollectible accounts.

(b) Assuming that Allowance for Doubtful Accounts has an unadjusted credit balance of $16,000, prepare the journal entry to record bad debts expense at December 31.

(c) Assuming that Allowance for Doubtful Accounts has an unadjusted debit balance of $8,400, prepare the journal entry to record bad debts expense at December 31.