The unadjusted trial balance for Pratt Corporation as at December 31^st 2020 includes the following balances:

Dr.Cr.

Accounts receivable............................................................... $150,000

Allowance for doubtful accounts............................................ $3,500

Sales (all on credit)................................................................. 680,000

Sales returns and allowances................................................ 30,000

Instructions

Assuming the above trial balance relates to Pratt's December 31^st 2020 year-end, prepare the adjusting journal entries for estimated bad debts assuming the following independent cases:

(a)The allowance account should be 6% of gross accounts receivable.

(b)Historical records indicate that, based on an aging of accounts receivable, the following percentages will not be collected:

BalancePercentage Estimated

To be Uncollectible

0-30 days outstanding $45,000 1%

31-60 days outstanding 60,000 5%

61-90 days outstanding 13,200 12%

Over 90 days outstanding 31,800 18%

(c)Allowance for Doubtful Accounts should be 6% of gross accounts receivable but the allowance account has a debit balance of $3,500 instead of a credit balance.

(d)Allowance for Doubtful Accounts has a debit balance of $3,500 and historical records indicate that the same percentages as in part (b) above are to be used to determine the appropriate balance in the allowance for Doubtful Accounts as at December 31 2020.

NB: Show your calculations.