The trial balance before adjustment of Vegen Company reports the Accounts Receivable with a balance of $600,000. All accounts have a normal balance unless stated otherwise.

Required: Please show all calculations.

(a) Assume that the Allowance for Doubtful Accounts has a normal balance of $8,000. Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 5% of accounts receivable.

(b) Assume that the Allowance for Doubtful Accounts has a debit balance of $8,000. Prepare the journal entry for the estimated bad debts assuming that doubtful accounts are estimated to be 6% of accounts receivable.

(c) Vegen Company received notice that ABC, Co., one of Vegen's credit customers, filed for bankruptcy. ABC, Co's account with Vegen totals $2,650. Prepare the journal entry to write-off ABC Co's account.

(d) State and explain the impact on the Balance Sheet and the Income Statement for the entry you recorded in (c) above.