Using the information provided in E9-7, prepare the journal entries required to record the provision for bad debts for the current year assuming:

a. Klug estimates its bad debt expense as 5% of net credit sales.
b. Klug estimates its bad debt expense as 4% of ending accounts receivable. For purposes of part (b), assume that there is a $25,000 credit balance in the allowance account before making any year-end adjustments to this account.

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Aging Category Current 1-30 Days Past Due 31-60 Days Past Due 61-90 Days Past Due Over 90 Days Past Due Ending Balance $300,000 620.000 122,000 178,500 63,000 % Estimated Uncollectible 0% 12% 25% 70% 90%