Problem 8-7A Bad debt expense L03 CHECK FIGURES: 1. Bad Debt Expense = $8.200; 2. Bad Debt Expense = $5,100 The following is information taken from the June 30, 2017, balance sheet of Tippleton Company: Accounts receivable.... Less: Allowance for doubtful accounts...... $320,000 14.000 $306,000 Part 1 During July, Tippleton Company recorded total sales of $850,000, all on credit. There were $30,000 of sales returns and allowances. Collections during July were $920,000. Total receivables identified as be- ing uncollectible and written off during July were $15,000. Tippleton estimates bad debts as 1% of net credit sales. Required Prepare the adjusting entry to record estimated bad debts for July. Part 2 During August, total sales of $845,000 were recorded, all on credit, Sales returns and allowances to- talled $14,000. Collections during the month were $710,000, which included the recovery of $1.950 from a customer account written off in a previous month. No accounts were written off during August Tippleton Company changed its method of estimating bad debts to the balance sheet approach be- cause the new accountant said it more accurately reflected uncollectible accounts. The resulting aging analusis determined total estimated uncollectible accounts at August 31 to be $14 950 Required Prepare the August 31 adjusting entry to record estimated bad debts for Aums