The following summarizes the aging of accounts receivable for Pie-zer Inc. as of December 31, 2021.

Number of Days Unpaid Account Receivable Historical %

Not yet paid $240,000 3%

1-30 days past due $90,000 5%

31-60 days past due $45,000 10%

Over 60 days past due $13,000 30%

REQUIRED:

1. The unadjusted balance of the Allowance for Doubtful Accounts of Pie-zer is a credit balance in the amount of $24,000 on January 1, 2020. Prepare the adjusting journal entry required to record Bad Debt Expense on December 31, 2021.

2. If Pie-zer writes off $3,500 of uncollectible accounts on January 10, 2022, then prepare the required adjusting journal entry to record the $3,500 write-off.

3. What is the net accounts receivable balance after the adjusting journal is made on January 10, 2022.

4. Suppose Pie-zer had credit sales of $400,000 for the year and adopted a 5% of credit sales method to post bad debt expense, then what would be the total bad debt expense for 2021?