Zillmann Company sells goods on credit and estimates bad debts as a percentage of Account receivable, the credit period is 30 days .The Company has three customers following are the details of the Receivables at Dec-31, 2017 from these customers and the respective date when sales were made.

Name of customers	Date of Sales	Account Receivables
Alexander	Nov-01,2017	$ 10,000
	Dec-15,2017	$ 12,000
Blair	Sep-10,2017	$ 16,000
	Oct-25,2017	$ 41,000
Chase	Aug-15,2017	$ 40,000

Required:

1. Which approach of recording bad debts is used by company?
2. Prepare aging schedule for Zillmann Company on Dec-31, 2017 in the format given below.

Name of Customer	Total	Not Yet due	1--30 Past due	31--60 Past due	61--90 Past due	Over 90 days
Bad debt %		3%	6%	13%	25%	60%

Calculate the estimated amount of bad debt by applying the percentage given in the above table.

4. Record the bad debt expense on Dec-31, 2017, assume allowance for bad debts has a debit balance of

$ 15,000 at this date.

5. Assume on Mar-15, 2018 Blair, declared bankrupt, Record this default in the books of Zilmann.
6. Do you think Zilmann can use direct write off approach to record bad debts, Max two lines.