1. The ledger of the Patio Company at the end of the current year shows Accounts Receivable of $80,000,

Credit Sales $940,000 and Sales Returns $40,000.

1. If the Allowance for Doubtful Accounts has a credit balance of $800 before adjustment, determine

bad debt expense assuming the company uses:

1. 1% of net sales -

B. If the Allowance for Doubtful Accounts has a debit balance of $500 before adjustment, determine

the ending balance in the Allowance account after adjustment assuming the company uses:

1. .75% of net sales -