1. Business
2. Accounting
3. Financial Accounting & Bookkeeping
4. The Accounting Cycle
5. 297146

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The trial balance before adjustment of Estefan Inc. shows the following balances

Accounts Receivable 80,000 debit
Allowance for Doubtful Accounts 1,750 debit
Sales( all on credit) 580,000 credit

Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 1% of net sales.