Problem 3: Bad Debt Expense (12 marks)		VERSION 4
At December 31, Y5; Aylmer Inc had the follow amounts related to accounts receivable:
	0 - 30 days	125,600		Total sales			2,560,000
	31 - 60 days	369,000		Percent of sales on account		90%
	61 - 90 days	78,690
	91 - 120 days	46,988
	Over 120 days	15,980
	TOTAL	636,258
Based on prior years, and an aging analysis, Aylmer's management determined that the following percents are estimated to be uncollectible:
	0 - 30 days	0.20%
	31 - 60 days	1.00%
	61 - 90 days	1.50%
	91 - 120 days	7.00%
	Over 120 days	9.00%
REQUIRED - based on the above information, answer the four (4) following INDEPENDANT questions:
1. If Aylmer uses the balance sheet approach, given the information above, prepare the appropriate journal entry to record bad debt expense,
	assuming that the allowance for doubtful accounts has a CREDIT balance of	4,669
Date	Account Name		Dr	Cr
2. If Aylmer uses the balance sheet approach, given the information above, prepare the appropriate journal entry to record bad debt expense,
	assuming that the allowance for doubtful accounts has a DEBIT balance of	1,654
Date	Account Name		Dr	Cr
3. If Aylmer uses the income statement approach, given the information above, prepare the appropriate journal entry to record bad debt expense:
assuming that bad debt expense is estimated to be	1.10%	of credit sales
Date	Account Name		Dr	Cr
4. On January 28, Y6, a customer that owed Aylmer $2,890 declared bankruptcy. Prepare the appropriate journal entry.
Date	Account Name		Dr	Cr