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1. At the end of the current year, the accounts receivable account has a debit balance of $825,000 and net sales for the year total $9,400,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following assumptions:
a. The allowance account before adjustment has a credit balance of $11,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $36,000.
b. The allowance account before adjustment has a debit balance of $6,000. Bad debt expense is estimated at 1/2 of 1% of net sales.
c. The allowance account before adjustment has a debit balance of $6,000. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $49,500.
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