The November 30, 2017, balance sheet of Thyme Company reported the following:
Accounts Receivable ...................................................... $358,000
Allowance for Doubtful Accounts (credit balance) .................. 7,700
At the end of each quarter, Thyme estimates bad debt expense to be 2 percent of credit sales. At the end of the year, the company ages its accounts receivable and adjusts the balance in Allowance for Doubtful Accounts to correspond to the aging schedule. During the last month of 2017, Thyme completes the following selected transactions:
Dec. 9 Made a compound entry to write off the following uncollectible accounts:
M. Yang, $710; Tory Ltd., $315; and S. Roberts, $1,050.
18 Wrote off as uncollectible the $1,360 account receivable from Acme Ltd. and the $790 account receivable from Data Services.
31 Recorded bad debt expense based on credit sales of $420,000.
31 Recorded bad debt expense based on the following summary of the aging of accounts receivable:

Required
1. Record the transactions in the general journal.
2. Open the Allowance for Doubtful Accounts three-column ledger account and post entries affecting that account. Keep a running balance.
3. Most companies report two-year comparative financial statements. If Thyme Company's
Accounts Receivable balance was $299,500 and the Allowance for Doubtful Accounts stood at $9,975 on December 31, 2016, show how the company will report its accounts receivable on a comparative balance sheet for 2017 and 2016.
4. Suppose, on December 31, 2017, the bad debt expense was based on an estimate of 3 percent of the accounts receivable balance, rather than on the aging of accounts receivable.
Record the December 31, 2017, entry for bad debt expense in the general journal.

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Age of Accounts Accounts Receivable Total = $341,900 Estimated percent uncollectible 1-30 Days $188,400 0.15% 31-60 Days $78,500 0.55% 61-90 Days $40,500 70% Over 90 Days $34,500 35.0%