Jacobian Steel Manufacturing sells bulk steel products for maritime constructi

Jacobian Steel Manufacturing sells bulk steel products for maritime construction. The company has used the allowance method for estimated
bad debts for several years. Specifically they estimate that 6% of credit sales will go bad each year. Over the past several years Jacobian has seen that
year-end allowance account has a debit balance before adjustment. The company wants an in-depth analysis of bad debts and a determination as to which
method to use. You have been hired to perform the study. During your review of their financial records the following data becomes available.