Some Company uses the allowance method for handling receivables. Total Sales for

the year were $$1,050,000($ $$725,000$ credit sales and $$325,000$ cash sales$).$ The

unadjusted balance for Accounts Receivable was is $$94,000$ debit balance and

Allowance for Doubtful Accounts $$1,800$ DEBIT balance. For each unrelated situation

below, provide the Dec $31$ adjusting entry for Bad Debt Expense, post the entry to T$-$

accounts, and show how accounts receivable would appear on the balance sheet.

a$)$ Some company estimates that $1\%$ of credit sales will be uncollectible.

Accounts Receivable

Less: Allowance for Doubtful Accounts

Accounts Receivable, Net

b$)$ Some Company estimates that $9\%$ of accounts receivable will be uncollectible.

Accounts Receivable

Less: Allowance for Doubtful Accounts

Accounts Receivable, Net