During 2012, Slainge Corporation had a total of $8,000,000 in sales, of which 85% were on credit. At year-end, the Accounts Receivable balance showed a total of $3,600,000, which had been aged as follows:

Age Amount

Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,100,000

1–30 days past due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000

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

61–90 days past due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000

Over 90 days past due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000

$3,600,000

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 $9,500 immediately before these adjustments.

Required:

1. Based on experience, uncollectible accounts existing at year-end are estimated to be 2.5% of total accounts receivable.

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

1% of current accounts receivable

7% of accounts 1–30 days past due

12% of accounts 31–60 days past due

21% of accounts 61–90 days past due

35% of accounts over 90 days past due