The Kraft Heinz Company was formed in 2015 with the merger of Kraft Foods and H. J. Heinz Corporation. The company reported the following rounded amounts for the year ended January 3, 2016 (all amounts in millions):

	Debits				Credits
Accounts Receivable	$	900
Allowance for Doubtful Accounts					$	30
Sales (assume all on credit)						18,300

Required:

1. Assume Kraft Heinz uses of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry required for the year, assuming no Bad Debt Expense has been recorded yet.

2. Assume instead Kraft Heinz uses the aging of accounts receivable method and estimates that $80 of its Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at January 3, 2016, for recording Bad Debt Expense.

3. Assume instead that Kraft Heinz uses the aging of accounts receivable method and estimates that $80 of its Accounts Receivable will be uncollectible. Prepare the year-end adjusting journal entry for recording Bad Debt Expense assuming Kraft Heinz's unadjusted balance in Allowance for Doubtful Accounts at January 3, 2016 was a debit balance of $20.

4. If one of Kraft Heinzs customers declared bankruptcy, what journal entry would be used to write off its $15 balance?

Required 1 Required 2 Required 3 Required 4 Assume Kraft Heinz uses 1/2 of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry . (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field. Enter your answers in millions i.e., 10,000,000 should be entered as 10). Round your answers to the nearest whole number.) Show less View transaction list Journal entry worksheet Record the entry for bad debt expenses under the percentage of credit sales method. Note: Enter debits before credits. General Journal Debit Credit Date January 03, 2016 Record entry Clear entry View general journal