Molina Company Had a $700 Credit Balance in Allowance for Doubtful

Molina Company had a $700 credit balance in Allowance for Doubtful Accounts at December 31 2016 before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: $$\begin{array} { l cc } & & \begin{array} { c } \text { Estimated Percentage } \\\text { Uncollectible }\end{array} \\\text { Current Accounts } & \$ 120,000 & 1 \% \\1 - 30 \text { days past due } & 20,000 & 3 \% \\31 - 60 \text { days past due } & 10,000 & 6 \% \\\text { 61-90 days past due } & 10,000 & 12 \% \\\text { Over } 90 \text { days past due } & 8,000 & 30 \% \\\text { Total Accounts Receivable } & \$ 168,000 &\end{array}$$
Instructions
(a) Prepare the adjusting entry on December 31 2016 to recognize bad debt expense.
(b) Assume the same facts as above except that the Allowance for Doubtful Accounts account had a $500 debit balance before the current year's provision for uncollectible accounts. Prepare the adjusting entry for the current year's provision for uncollectible accounts.
(c) Assume that the company has a policy of providing for bad debts at the rate of 1% of sales that sales for 2016 were $550000 and that Allowance for Doubtful Accounts had a $650 credit balance before adjustment. Prepare the adjusting entry for the current year's provision for bad debts.