I.Explain /show work for Journalizing Bad Debts--Allowance Method Noell Co. sells Christmas angels. Noell determines that at the end of December, it has the following aging schedule of Accounts Receivable:

Customer

Total

Not Yet Due

Number of Days Past Due

1-30

31-60

61-90

Over 90

DV Farmer

$5,000

$3,000

$2,000

JJ Joysen

3,000

1,000

2,000

NJ Bell

1,500

500

1,000

JC Net

2,000

2,000

11,500

3,000

3,000

2,500

2,000

1,000

% uncollectible

1%

5%

10%

20%

50%

Total Estimated Uncollectible Amounts

(a)explain the Calculation of the total estimated bad debts based on the information presented in the table.

(b) explain by showing the year-end adjusting journal entry to record bad debts using the aged uncollectible accounts receivable determined in (a).Assume the current balance in Allowance for Doubtful Accounts is a $650 debit. Dr. Cr.

(c) Assume that the company has a policy of providing for bad debts at the rate of 1% of sales, with Sales for 2008 being $55,000. show the adjusting entry for bad debts under the percentage of sales basis.Dr. Cr.