Understanding Allowance for Doubtful Accounts, 5 points

At December 31, 2020, its annual year-end, the accounts of Sensai Systems Inc. show the following.

• Sales revenue for 2020, $1,080,000, of which one-sixth was on account.
• Allowance for doubtful accounts, balance December 31, 2019, $5,400 credit.
• Accounts receivable, balance December 31, 2020 (prior to any write-offs of uncollectible accounts during 2020), $108,300.
• Uncollectible accounts to be written off, December 31, 2020, $6,300.
• Aging schedule at December 31, 2020, showing the following breakdown of total accounts receivable, excluding amounts to be written off.

Status			Amount
Not past due			Remainder
Past due 160 days			$ 24,000
Past due over 60 days			18,000

1. Prepare the 2020 entry to write off the uncollectible accounts.
2. Prepare the 2020 adjusting entry to record bad debt expense for each of the following independent assumptions concerning expected bad debt loss rates.
   1. Based on credit sales, 1.5%.
   2. Based on total receivables at year-end, 2.5%.
   3. Based on aging schedule: not past due, 0.5%; past due 160 days, 1%; and past due over 60 days, 8%.
3. Prepare the 2020 balance sheet disclosure relating to accounts receivable for each assumption in Part 2.