5 * X A A Due Stace DIZL N. This assignment accounts for 3 extra points. Overche assignment will not be accepted. No point will be given when proper work/areswer is not provided. Points will be deducted for errors. Below are two independent problems related to bad debt estimates. 1. An upadiusted trial balance for Highperformance Co shows the following balances at December 31: Debit Credit Accounts Receivable S180,000 Allowance for Doubtful Accounts $5,400 Sales (all credit) 420,000 Sales Discounts 40,000 Case 1: Assume that the company estimates its bad debts based on percentage of accounts receivable method. Company experience indicates that 4% of receivable will be ungollectible Answers b: Case 2: Assume that the allowance for bail debts has a debit balance of $400 instead. Other things being equIl Answers 2. An aging schedule is developed as follows. Days Accountoutstanding Less than 16 days 16-30 days 31-45 days 45-60 days Amount Uncollectible rates $300,000 0.02 100,000 0.10 80.000 0.25 40.000 0.45 Assume that the allowance for bad debes had a credit balance of $40,000 before adjustment Calculate: a. the ending "allowance for bad debts" balance and b. the "bad debt expense" Answer a Default Style Abs English (USA) DI