SS Moving Company reported $400,000 in credit sales in December 2020. The company has historically seen...

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SS Moving Company reported $400,000 in credit sales in December2020. The company has historically seen losses (bad debt) ofapproximately 1% of all credit sales. On December 31, 2020, theAccounts Receivable balance is $201,000. SS’s accountants preparedthe following Aging of Accounts Receivable as of December 31,2020:
--------------------------Number of days pastdue-----------------------------
Total Balance 0-30 31-60 61-90 Over 90 Accts.
Receivable $201,000 $60,000 $90,000 $50,000 $1,000
Estimated % uncollectible 1% 5% 15% 50%
Assuming that SS Moving Company uses the income statementapproach (percentage of credit sales method) to record the bad debtexpense each period, record the journal entry for December 2020 ineach of the following scenarios (you need two journal entries andthey can both be in the space provided).
A) The current balance in the Allowance for Doubtful Accounts is$3,000.
B) The current balance in the Allowance for Doubtful Accounts is$10,000. You should show your journal entries AND your calculationsin this space...

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SS Moving Company reported $400,000 in credit sales in December2020. The company has historically seen losses (bad debt) ofapproximately 1% of all credit sales. On December 31, 2020, theAccounts Receivable balance is $201,000. SS’s accountants preparedthe following Aging of Accounts Receivable as of December 31,2020:--------------------------Number of days pastdue-----------------------------Total Balance 0-30 31-60 61-90 Over 90 Accts.Receivable $201,000 $60,000 $90,000 $50,000 $1,000Estimated % uncollectible 1% 5% 15% 50%Assuming that SS Moving Company uses the income statementapproach (percentage of credit sales method) to record the bad debtexpense each period, record the journal entry for December 2020 ineach of the following scenarios (you need two journal entries andthey can both be in the space provided).A) The current balance in the Allowance for Doubtful Accounts is$3,000.B) The current balance in the Allowance for Doubtful Accounts is$10,000. You should show your journal entries AND your calculationsin this space...