Rogala foods inc sells oscar mayer jell-o tassimo and many

Question

 

Rogala Foods, Inc. sells Oscar Mayer, Jell-O, Tassimo, and many other food brands. The company reported the following rounded amounts as of December 29, 2012 (all amounts in millions):

 

	Debits		Credits
Accounts Receivable	$	1,140
Allowance for Doubtful Accounts			$	28
Sales (assume all on credit)				18,500

 

Required:

 

1&2.	Prepare the adjusting journal entry required at December 31, 2012, for recording Bad Debt Expense. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Round your answers to the nearest whole number.)
	(i) Assume Rogala uses 3/4 of 1 percent of sales to estimate its Bad Debt Expense for the year.
	(ii) Assume instead that Rogala uses the aging of accounts receivable method and estimates that $82 of its Accounts Receivable will be uncollectible.
	1. Record the entry for bad debt expenses under the percentage of credit sales method. 2. Record the entry for bad debt expenses under the aging of accounts receivable method.