Answer:
1a.	Dec-31
Dr Allowance for doubtful accounts	$780	
Accounts receivable (Patty's Bake Shop) Cr $780
1b .	Dec-31	
Dr Bad debt expense	$1,000	
Cr Allowance for doubtful accounts $1,000
2a. Bad debt expense $1,000
2b. Doubtful accounts $25,170
Explanation:
1. Preparation of the journal entries 
First step is to adjust for estimated bad debt expense for current year 
Aged Accounts Receivable Estimated Percentage Uncollectible	Estimated Amount Uncollectible
Not yet due	19,000*	2%=	$380
Up to 120 days past due	5,000*11%=$550
Over 120 days past due	3,000*30%=$900
Estimated balance in allowance for Doubtful Accounts $1,830
Less Current balance in allowance for Doubtful Accounts ($830)
Bad Debt Expense for the year $1,000
($1,830-$830)
Now let prepare the Journal entry:
1a. Dec-31
Dr Allowance for doubtful accounts	$780	
Accounts receivable (Patty's Bake Shop) Cr $780
(To record Write off accounts receivable)
1b.	Dec-31	
Dr Bad debt expense	$1,000	
Cr Allowance for doubtful accounts $1,000
(To record allowance of doubtful account)
2aCalculation to Show how the amounts related Bad Debt Expense would be reported on the income statement and balance sheet for the current year. 
BROWN COW DAIRY COMPANY
Income Statement (Partial)
As of December 31
Operating expenses:	
Bad debt expense $1,000
2b. Calculation to Show how the amounts related to Accounts Receivable would be reported on the income statement and balance sheet for the current year. 
BROWN COW DAIRY COMPANY
Balance Sheet (Partial)
As of December 31
Current assets:	
Accounts receivable (Patty's Bake Shop) $27,000
(Less)Allowance for doubtful accounts ($1,830)
Accounts receivable, net of allowance for Doubtful accounts $25,170
Accounts receivable =$ 19,000+$5,000+$3,000 Accounts receivable =$27,000
Allowance for doubtful accounts = $380+$550+$900 
 Allowance for doubtful accounts = $1,830
Therefore the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the income statement and balance sheet for the current year will be :
Bad debt expense $1,000
 Doubtful accounts $25,170