This is question #5. I have attached questions 1-4 below as additional information. ABC Co has the following balances in its accounts as of 12/31/19:

Accounts Receivable 7,360,600

Allowance for Bad Debts (270,000)

Bad debt expense 150,000

a. ABC Co needs to make the following adjustments as of 12/31/19:

b. Write off an uncollectible account fromAAA for $95,000

c. Record receipt of $132,000 received from bankruptcy court re: BBB Co.This receivable was written off in 2018. d. Adjust the Allowance Account to 8.6% of AR

Compute the adjusted balances in the following accounts as of 12/31/19

Accounts Receivable

Allowance for Bad Debts

Bad debt expense

Additional Information:

1. SallyCo has determined that the receivable from BobCo in the amount of $35,300 is uncollectible.Prepare the journal entry writing off the BobCo receivable assuming SallyCo uses the Direct Write-Off Method:

Bad debt expense DR35,300

Accounts Recieveable CR35,300

2. SallyCo has determined that the receivable from BobCo in the amount of $35,300 is uncollectible. Prepare the journal entry writing off the BobCo receivable assuming SallyCo uses the Allowance Method:

Bad debt expense DR35,300

Allowance for bad debts CR35,300

3. IBT CO uses the allowance method for bad debts.IBT estimates its allowance for bad debts based on a historically supported factor of 7% of accounts receivable.IBT's 2019 credit sales were $10,500,000.IBT's AR balance as of 12/31 is $5,650,000 The balance in IBT's Allowance for Bad Debts account as of 12/31/18 was $(246,000). Prepare the adjusting entry required to adjust IBT's Allowance for Bad Debts as of 12/31/19:

Bad debt expense DR149,500

Allowance for doubtful accounts CR 149,500

4. Assume the same facts as #3 above except the balance in IBT's Allowance for Bad Debts account was $125,500 Prepare the adjusting entry required to adjust IBT's Allowance for Bad Debts as of 12/31/19:

Bad Debt Expense CR270,000

Allowance for doubtful accounts CR270,000