During 2009, Wishbone Corporation had a total of $5,000,000 in sales, of which 80% were on credit. At year-end, the Accounts Receivable balance showed a total of $2,300,000, which had been aged as follows:

Age Amount

Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,900,000

1-30 days past due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000

31-60 days past due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000

61-90 days past due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000

Over 90 days past due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000

$2,300,000

Prepare the journal entry required at year-end to record the bad debt expense under each of the following independent conditions. Assume, where applicable, that Allowance for Bad Debts had a credit balance of $5,500 immediately before these adjustments.

Required:

1. Use the direct write-off method. (Assume that $60,000 of accounts are determined to be uncollectible and are written off in a single year-end entry.)

2. Based on experience, uncollectible accounts existing at year-end are estimated to be 3% of total accounts receivable.

3. Based on experience, uncollectible accounts are estimated to be the sum of:

1% of current accounts receivable

6% of accounts 1-30 days past due

10% of accounts 31-60 days past due

20% of accounts 61-90 days past due

30% of accounts over 90 days past due