At the end of the current year, the accounts receivable account has a balance of $650,000, and net sales for the year total $5,500,000. Determine the amount of the adjustment for doubtful accounts under each of the following assumptions:
- The allowance account before adjustment has a negative balance of $3,175. Bad debt expense is estimated at ¼ of 1% ofnet sales.
- The allowance account before adjustment has a negative balance of $4,600. An aging of the accounts in the customer's ledger indicates estimated doubtful accounts of $17,500.
- The allowance account before adjustment has a positive balance of $8,100. Bad debt expense is estimated at ½ of 1% of net sales.
- The allowance account before adjustment has a positive balance of 8,100. An aging of the accounts in the customer's ledger indicates estimated doubtful accounts of $24,650.