Your company has $3,300,000 in credit sales during 2011. The beginning balance of the allowance for doubtful accounts is $4,700 and the company writes off $1,000 in bad debts during the year. (a) Calculate the estimated doubtful accounts using the aging of accounts receivable method given that $1,680,000 of the credit sales are not yet due (estimated that 0.6% are uncollectible), $350,000 are 1-60 days late (estimated that 1.40% are uncollectible) and $20,000 are over 60 days late (estimated that 26% are uncollectible). (Omit the "$" 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

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General Journal

Debit

Credit

(Click to select)Bad debt expenseAccounts receivableAccounts payableInterest revenueAllowance for doubtful accountsCashInterest receivableNotes receivable

(Click to select)CashNotes receivableAccounts payableBad debt expenseInterest revenueAccounts receivableAllowance for doubtful accountsInterest receivable

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(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 1.90% of credit sales. (Omit the "$" sign in your response.)

Estimated bad debt expense

$

General Journal	Debit	Credit
(Click to select)Interest receivableInterest revenueBad debt expenseAccounts receivableAllowance for doubtful accountsNotes receivableAccounts payableCash
(Click to select)Accounts payableBad debt expenseAccounts receivableCashInterest revenueNotes receivableAllowance for doubtful accountsInterest receivable