Tunnell Company reported the below information at year-end on December 31, 2020:

1. Net credit sales for 2020 $2,400,000

2. Accounts Receivable on December 31, 2020 $900,000

3. Uncollectible accounts receivable written off during 2020 $45,000

a) What amount of bad debts expense will Tunnell Company record for 2020 if it uses the direct write-off method of accounting for uncollectible accounts receivable?

b) Assume that Tunnell Company decides to estimate uncollectible accounts receivable at 3% of net credit sales for 2020. What amount of bad debts expense will Tunnell Company record at year-end if Allowance for Doubtful Accounts has a credit balance of $4,500 on December 31, 2020 ( before

adjustment )?

c) Assume that Tunnell Company decides to estimate uncollectible accounts receivable based on 5% of the Accounts Receivable balance on December 31, 2020. What amount of bad debts expense will Tunnell Company record at year-end if Allowance for Doubtful Accounts has a credit balance of

$3,500 on December 31, 2020 ( before adjustment )?

d) Assume the same facts as in c), except that there is a $3,500 debit balance in Allowance for Doubtful Accounts on December 31, 2020 ( before adjustment ). What amount of bad debts expense will Tunnell Company record at year-end in this situation?