Wecker Company's year-end unadjusted trial balance shows accounts receivable of $89,000, allowance for doubtful accounts of $500 (credit), and sales of $270,000. Uncollectibles are estimated to be 1.5% of accounts receivable.
1. What would be the bad debts expense ?
2. What would be the allowance for doubtful accounts?
3. What amount would have been used in the year-end adjusting entry if the allowance account had a year-end unadjusted debit balance of $200?