The trial balance of Vesnia Company at December 31, 2001 includes the following:

Accounts Receivable 100,000 Debits

Allowance for Doubtful Accounts 500 Debits

Sales (all on credit) 800,000 Credits

Sales Returns and Allowances. 60,000 Debits

(1) If Vesnia uses the aging method and estimates that $7,000 of receivables will be uncollectible, prepare the adjusting entry.

(2) If Vesnia estimates uncollectibles at 1% of net credit sales, prepare the appropriate adjusting entry.

(3) Assume that on February 10, 2001 the specific account of Nick James with a balance of $400, is deemed uncollectible. Record the write-off.