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Return on total resources(assets) = Net sales/ Total assets

= 850,000 / (150,000+ 80,000+ 149,000+ 71,000+ 30,000)
= 850,000/480,000
= 1.77

Journalize entry

[Dr.] Bad debt expense 15,300
[Cr.] Allowance for uncoll. Acc. 15,300

Explaination:

management determines that they need an allowance equal to 3% of...

'Salary expense' should be debited.

As per accrual basis of accounting, expenses should be recognized when incured.

[Dr.] Salary expense XX
[Cr.] Salary payable XX

This adjusting...

The act of writing off an uncollectible account will have no effect on assets.

Reason:

Account receivables are shown at their Net reliazable value >
For example:

Acc. Recv. ...