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At the completion of the current fiscal year ending December $31,$ the balance of Accounts Receivable for Anderson's Greeting Cards was $$180,000.$ Credit sales for the year were $$1,950,000.$

Make the necessary adjusting entry in general journal form under each of the following assumptions. Show calculations for the amount of each adjustment and the resulting net realizable value.

Required:

Allowance for Doubtful Accounts has a credit balance of $$2,600.$

$($a$)$ The percentage of sales method is used and bad debt expense is estimated to be $1\mathrm{.}5\%$ of credit sales.

$($b$)$ The percentage of receivables method is used and an analysis of the accounts produces an estimate of $$30,250$ in uncollectible accounts.

Allowance for Doubtful Accounts has a debit balance of $$1,900.$

$($a$)$ The percentage of sales method is used and bad debt expense is estimated to be $1\mathrm{.}0\%$ of credit sales.

$($b$)$ The percentage of receivables method is used and an analysis of the accounts produces an estimate of $$20,500$ in uncollectible accounts.

Chart of Accounts

Anderson's Greeting Cards

General Ledger

ASSETS

$101$ Cash

$122$ Accounts Receivable

$122\mathrm{.}1$ Allowance for Doubtful Accounts

$141$ Supplies

$145$ Prepaid Insurance

$181$ Office Equipment

$181\mathrm{.}1$ Accumulated Depreciation$-$Office Equipment

LIABILITIES

$202$ Accounts Payable

$219$ Salaries and Wages Payable

REVENUE

$401$ Sales

EXPENSES

$511$ Salaries and Wages Expense

$512$ Advertising Expense

$521$ Rent Expense

$523$ Supplies Expense

$525$ Phone Expense

$532$ Bad Debt Expense

$535$ Insurance Expense

$541$ Depreciation Expense$-$Office Equipment

$549$ Miscellaneous Expense

EQUITY

$313$ Income Summary

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