During 2000, Wishbone Corporation has a total of $\$ 5,000,000$ in sales, of which 80 percent are on credit. At year-end, the accounts receivable balance shows a total of $\$ 2,300,000$, which has been aged as follows:

Required: Prepare the journal entry required at year-end to record the bad debt expense un- der each of the following independent conditions. Assume, where applicable, that Allowance for Bad Debts has a credit balance of $5,500 immediately before these adjustments. 1. Use the direct write-off method. (Assume that $60,000 of accounts are deter- mined to be uncollectible and are written off in a single year-end entry.) 2. Based on experience, uncollectible accounts existing at year-end are estimated to be 3 percent of total accounts receivable. 3. Based on experience, uncollectible accounts are estimated to be the sum of: 1 percent of current accounts receivable 6 percent of accounts 1-30 days past due 10 percent of accounts 31-60 days past due 20 percent of accounts 61-90 days past due 30 percent of accounts over 90 days past due

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Age Current..... 1-30 days past duel Amount $1,900,000 200,000 31-60 days past due 61-90 days past due Over 90 days past due. 100,000 70,000 30,000 $2,300,000