(Solution) - Accounts Receivable of the Foxwood Manufacturing Co on December -(2025 Original AI-Free Solution)

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Accounts Receivable of the Foxwood Manufacturing Co. on December 31, 2008, had a balance of $450,000.Allowance for Bad Debts had a $3,600 debit balance. Sales in 2008 were $1,720,000 less sales discounts of $26,000. Give the adjusting entry for estimated Bad Debt Expense under each of the following independent assumptions.
1. Of 2008 net sales, 1.5% will probably never be collected.
2. Of outstanding accounts receivable, 3% are doubtful.
3. An aging schedule shows that $12,300 of the outstanding accounts receivable are doubtful.