For each of the following scenarios, calculate the amount of the adjusting journal entry for Bad Debt
Expense to be recorded, the balance in Allowance for Doubtful Accounts after adjustment at December
31, and the net realizable value of accounts receivable at December 31. (12 pts)
(a) Based on an analysis of Simmons Company’s $380,000 balance in Accounts Receivable at December
31, it was estimated that $15,500 will be uncollectible. There is a debit balance of $1,200 in Allowance for
Doubtful Accounts before adjustment.

(b) Blake Company had credit sales of $900,000 at year-end, an Accounts Receivable balance of $425,000
at December 31, and an Allowance for Doubtful Accounts debit balance of $11,000 before
adjustment. Blake estimates bad debt expense as 3⁄4 of 8% of credit sales.