The following information is provided regarding Garry Limiteds accounts receivable and allowance for doubtful accounts:

Accounts Receivable, January 1, 2019 $1,450,000

Collections of Accounts Receivable during the year $1,700,000

Write-offs of Accounts Receivable $ 425,000

Accounts Receivable December 31, 2019 $1,800,000

Allowance for Doubtful Accounts (December 31, 2019 balance (before bad debts adjusting entry at December 31, 2019) $ 155,000(debit)

Required:

(a) Calculate the credit sales for the year 2019.

(b) Provide the journal entry that was made to write-off the uncollectible amounts during 2019.

(c) Ignoring your answer to (a) and assuming that credit sales for 2019 were $4.15 million, prepare the bad debts adjusting entry assuming that management estimates that 3.00% of the credit sales would be uncollectible.

(d) After recording your entry from part (c), is the balance in the allowance for doubtful accounts adequate? Explain