Financial information for CNG Inc., follows. 1997 1996 1995 Credit sales $205,000 $200,000 $180,000 Actual bad debt write-offs 11,000 10,000 6,000 The company estimates bad debts for financial reporting purposes at 3 percent of credit sales. The balance in Allowance for Doubtful Accounts as of January 1, 1995, was $10,000. REQUIRED:

a. Provide the journal entries related to Allowance for Doubtful Accounts for 1995, 1996, and 1997.

b. Compute the balance in Allowance for Doubtful Accounts as of December 31, 1997.

c. Comment on the sufficiency of the bad debt charge and allowance over the 3-year period. How did you come to your conclusion?