Wilton

Question
Wilton, Inc. had net sales in 2012 of $1,373,000. At December 31, 2012, before adjusting entries, the balances in selected accounts were: Accounts Receivable $254,700 debit, and Allowance for Doubtful Accounts $2,537 credit. Wilton estimates that 2% of its net sales will prove to be uncollectible.
(a) Instead of estimating the uncollectibles at 2% of net sales, assume that 10% of accounts receivable will prove to be uncollectible. Prepare the entry to record bad debts expense.
Description/Account Debit Credit

(b) Instead of estimating uncollectibles at 2% of net sales, assume Wilton prepares an aging schedule that estimates total uncollectible accounts at $24,600. Prepare the entry to record bad debts expense.
Description/Account Debit Credit