Question 1 and 2 should be completed assuming that the company is using a percentage of credit sales approach to estimate uncollectible accounts. Question 3 and 4 and the bonus should be completed assuming that the company is using aging of receivables approach.

The following information relates to Logan Company at the end of 2016. Credit Sales for 2016 Accounts Recelvable-12/31/16 Allowance for Doubtful Accounts-12/31/16 (existing credit balance before adjustment) Estimated uncollected accounts per aging schedule at 12/31/16. $2,000,000 500,000 5,000 20,000 1. Refer to Logan Company. Prepare the necessary adjusting journal entry on December 31, 2016 to estimate uncollectible accounts if the percentage of credit sales approach is used and bad debts are estimated at 1.5% of credit sales. (3 points) 2. Refer to Logan Company. If the percentage of credit sales approach is used and bad debts are estimated at 1.5% of credit sales, how much is the net realizable value of the accounts receivable at 2016 after the adjustment? (2 points) December 31, Refer to Logan Company. Prepare the necessary adjustingjournal entry on December 31, 2016 to estimate uncollectible accounts if the aging approach is used to estimate bad debts. (3 points) 3. T 4. Refer to Logan Company. If the aging approach is used to estimate bad debts, how much is the net realizable value of the accounts receivable at December 31, 2016 after the adjustment? (2 points) Bonus Question: (3 points): Answer question #3 assuming that there was an existing debit balance of $5,000 in the Allowance for Doubtful Accounts on 12/31/16 instead of a credit balance