Juniper Company was formed in 1990. Sales have increased on the average of 5 percent per year during its first 10 years of existence, with total sales for 1999 amounting to $\$ 400,000$. Since incorporation, Juniper Company has used the allowance method to account for uncollectible accounts receivable.

On January 1, 2000, the company's Allowance for Bad Debts had a credit balance of $\$ 5,000$. During 2000 , accounts totaling $\$ 3,500$ were written off as uncollectible.

Required:

1. What does the January 1, 2000, credit balance of $\$ 5,000$ in Allowance for Bad Debts represent?

2. Since Juniper Company wrote off $\$ 3,500$ in uncollectible accounts receivable during 2000, was the prior year's estimate of uncollectible accounts receivable overstated?

3. Prepare journal entries to record:

a. The $\$ 3,500$ write-off of receivables during 2000 .

b. Juniper Company's 2000 bad debt expense, assuming an aging of the December 31,2000 , accounts receivable indicates that potential uncollectible accounts at year-end total $\$ 9,000$.