On september 30, the following adjustments must be made:  [note: this is a sample.] depreciation of baking equipment transferred to company on 7/13. assume a half month of depreciation in july using the straight-line method.  accrue interest for note payable. assume a full month of interest for july. (6% annual interest on $10,000 loan from parents.)  record insurance used for the year.  actual baking supplies on-hand as of september 30 are $1,100.  office supplies on-hand as of september 30 are $50.

Johnson company uses the allowance method to account for uncollectible accounts receivable. bad debt expense is established as a percentage of credit sales. for 2018, net credit sales totaled $6,400,000, and the estimated bad debt percentage is 1.40%. the allowance for uncollectible accounts had a credit balance of $61,000 at the beginning of 2018 and $49,500, after adjusting entries, at the end of 2018.required: 1. what is bad debt expense for 2018 as a percent of net credit sales? 2. assume johnson makes no other adjustment of bad debt expense during 2018. determine the amount of accounts receivable written off during 2018.3. if the company uses the direct write-off method, what would bad debt expense be for 2018?