Question: Canary Company had credit sales of 220 000 during 2012 The

Canary Company had credit sales of $220,000 during 2012. The balance in Allowance for Doubtful Accounts is a $1,040 debit balance. Journalize the Bad Debts Expense for December 31 using each of the following methods:
a. Bad Debts Expense is estimated at 2.5% of credit sales.
b. The aging of Accounts Receivable indicates that $2,700 will be required in the Allowance account to cover Bad Debts Expense.

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