Your company has $3,000,000 in credit sales during 2011. The beginning balance of the allowance for doubtful accounts is $4,500 and the company writes off $600 in bad debts during the year.

(a)

Calculate the estimated doubtful accounts using the aging of accounts receivable method given that $1,540,000 of the credit sales are not yet due (estimated that 0.6% are uncollectible), $347,000 are 1-60 days late (estimated that 2.70% are uncollectible) and $13,000 are over 60 days late (estimated that 33% are uncollectible). (Omit the "$" sign in your response.)

Estimated doubtful accounts

$

(b)

Using the assumptions in the initial problem statement above, and using the aging of accounts method, calculate the bad debt expense. Show your calculation in a T-account for Allowance for doubtful accounts and present the journal entry to record bad debt expense. (Omit the "$" sign in your response.)

Allowance for doubtful accounts

Write-offs				Beginning balance
				Bad debt expense
				Ending balance

General Journal	Debit	Credit

(c)	Calculate the estimated bad debt expense using the percentage of credit sales method and prepare the journal entry. Historically your company is unable to collect 1.50% of credit sales. (Omit the "$" sign in your response.)

Estimated bad debt expense

$

General Journal	Debit	Credit