Sammy€™s Downtown Properties developed an aged schedule of accounts receivable at the end of each year.

The company estimated an allowance for uncollectible accounts based on the following rules:
Aging Category Allowance Provided
Current€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦ 4%
1€“ 30 Days Past Due€¦€¦€¦€¦€¦€¦€¦8%
31€“ 60Days Past Due€¦€¦€¦€¦€¦€¦€¦10%
61€“ 90 Days Past Due€¦€¦€¦€¦€¦€¦€¦35%
Over 90Days Past Due€¦€¦€¦€¦€¦€¦€¦ 50%
Sammy€™s reported net credit sales of $ 4,500,000 for the current year. We present the company€™s ending balances of accounts receivable and the allowance for uncollectible accounts below:

Required
a. Compute the balance required in the allowance for uncollectible accounts.
b. Prepare the journal entry record the bad debt provision for the current year.
c. Independent of your answer to part (b), prepare the journal entry to record the bad debt provision for the current year, assuming that the allowance for uncollectible accounts had a $7S35 debit balance.

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Sammy's Downtown Properties: Aged Schedule of Accounts Receivable Past Due Customer Crosby Consultants $120,000 $45,000 3,000 Whitamann Company 4 Current 1-30 Days 31-60 Days 61-90 Days Over 90 Days Totals $168,000 90,500 196,900 286,000 42,900 $124.000 74 500 67200 $45,700 $276.000 $587400 4,000 18,500 s 68,000 Lite Laser Products 29,500 45,700 $13,900 31,800 $124,000 $74500 $67,200 $45,700 11,100 Dual Power Industries Totals Accounts Receivable Ending Balance 587400 Allowance for Uncollectible Accounts 20,000 Unadjusted Ending Balance