Transcribed image text : On the year end of August 31, 2020, Rainbow Appliances had the following account balances before adjustments for bad debt was made Net Credit Sales for the period 51,291,000 CR Accounts Receivable $770,000 DR AFDA $3,700 DR Do not enter dollar signs or commas in the input boxes. a) Use the year-end balances reported on the balance sheet and the aging schedule shown below to calculate the allowance for doubtful accounts. Aging Category Bad Debt % Balance Estimated Bad Debt Less than 30 days 1% $509,000 31-60 days 3.5% $125,000 61-90 days 15% $68,000 91-120 days 21% $38,000 Over 120 days 56% $30,000 Total $770,000 Prepare the journal entry to record bad debt expense for the year Date Account Title and Explanation Debit Credit Aug 31 To record bad debt expense b) Assume instead that Rainbow Appliances used the income statement approach for estimating bad debt. If historical data indicates that approximately 1% of net credit sales are uncollectible, what amount is expected to be uncollectible? Uncollectible amount Using the information provided at the beginning of the question, what is the balance in the allowance for doubtful accounts after the adjustment using the income statement approach? Allowance for doubtful accounts