Question: 1. Fontanaco uses the Allowance Method for recognizing bad debt expense. At the end of its' fiscal year (12-31-18) there was a $150,000 credit balance

1. Fontanaco uses the Allowance Method for recognizing bad debt expense.

1. Fontanaco uses the Allowance Method for recognizing bad debt expense. At the end of its' fiscal year (12-31-18) there was a $150,000 credit balance in the Allowance For Bad Debts account. Fontanaco's credit department has prepared an aged accounts receivable and has estimated the $750,000 of its current accounts receivable will be un- collectable. In addition, it is estimated that 1% of Fontanaco's credit sales of $90,000,000 will be uncollectable. Required (16pts.): Make the required adjusting entry on 12/31/18 assuming: The balance sheet method. b. The income statement method

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