The following information (prior to adjustment) is available from the accounting records of the Bradford Company on December 31, 2007: Cash sales .......... $ 93,100

Question

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The following information (prior to adjustment) is available from the accounting records of the Bradford Company on December 31, 2007:

Cash sales .......... $ 93,100

Net credit sales ........262,900

Total sales (net) ..............$356,000

Accounts receivable ............. 126,300

Allowance for doubtful accounts ........ 2,150 (credit)

Required

Prepare journal entries to record the estimate of Bradford’s bad debt expense for 2007 assuming:

1. Bad debts are estimated to be 1.5% of total sales (net).

2. Bad debts are estimated to be 2% of net credit sales.

3. Bad debts are estimated to be 5% of gross accounts receivable.