Accounts Receivable of the Chalet Housing Co. on December 31, 2011, had a balance of $550,000. Allowance for Bad Debts had a $4,500 debit balance. Sales in 2011 were $3,450,000 less sales discounts of $51,000. Give the adjusting entry for estimated Bad Debt Expense under each of the following independent assumptions.
1. Of 2011 net sales, 2.5% will probably never be collected.
2. Of outstanding accounts receivable, 4% are doubtful.
3. An aging schedule shows that $16,700 of the outstanding accounts receivable are doubtful.