Chapter 8 Practice Problems Problem #5 - Percentage of sales method At the end of the current year, Accounts Receivable has a balance of $4,000,000; Allowance for Doubtful Accounts has a credit balance of $50,000; and Net Sales for the year total $7,500,000. Bad Debt Expense is estimated at 3/4 of 1% of Net Sales. 1) Calculate the dollar amount required to record the allowance amount. 2) Prepare the adjusting journal entry for the Allowance for Doubtful Accounts: Date Accounts 3) Calculate the Net Accounts Receivable Balance Dr Cr Problem #6 - Percentage of sales method At the end of the current year, Accounts Receivable has a balance of $2,500,000; Allowance for Doubtful Accounts has a credit balance of $10,000; and Net Sales for the year total $6,500,000. Bad Debt Expense is estimated at of 1% of Net Sales. 1) Calculate the dollar amount required to record the allowance amount. 2) Prepare the adjusting journal entry for the Allowance for Doubtful Accounts: Date Accounts 3) Calculate the Net Accounts Receivable Balance Dr Cr