Jupiter Corp uses the allowance method for its receivables. Jupiter's Accounts Receivable has a balance of $75,000 and its Allowance for Doubtful Accounts has a credit balance of $3,000 before writing off Ray Corporation's account receivable of $4,100. After the write-off, Jupiter prepared an aging of its accounts receivable. The aging showed that $2,800 of its remaining accounts receivable were unlikely to be collected

8. Jupiter Corp's journal entry to write off Ray Corporation's account will include a debit to which account?

9. Immediately after writing off Ray Corporation's account receivable, the balance in the Allowance for Doubtful Accounts will be $__________, a __________balance.

10.Using the aging method (balance sheet approach, percentage of receivables), the amount of the journal entry to record bad debts expense will be $__________.

11.After bad debts expense has been recorded, the balance in the account Allowance for Doubtful Accounts will be $__________, a __________ balance.

12.A company has been experiencing credit losses of 0.4% of net credit salesa rate that is consistent with its industry. In August the company had net credit sales of $100,000. Its Allowance for Doubtful Accounts has a $6,000 credit balance which seems appropriate for customers' past due balances. The amount for the journal entry under the sales or income statement approach for estimating bad debts expense for August is: $__________.