The trial balance of Stardust Company at the end of its 2000 fiscal year included the

\section*{Estimating Bad Debts} following account balances:

\section*{Account}

Accounts Receivable

$\$ 48,900$

Allowance for Bad Debts 2,500 (debit balance)

The company has not yet recorded any bad debt expense for 2000 .

Determine the amount of bad debt expense to be recognized by Stardust Company for 2000 assuming the following independent situations:

1. An analysis of the aging of accounts receivables indicates that probable uncollectable accounts receivable at year end amounts to $\$ 4,500$.

2. Company policy is to maintain a provision for uncollectible accounts receivable equal to 3 percent of outstanding accounts receivables.
3. Company policy is to estimate uncollectible accounts receivable equal to 0.5 percent of the previous year's annual sales, which were $\$ 200,000$.