Entries for Bad Debt Expense
Patagonia Corp Instructions
Prepare Adjusting Journal Entries Assuming That the Estimate of Included

Entries for bad debt expense
Patagonia Corp.'s unadjusted trial balance included the following:
$\begin{array}{llcc} \text { } &\underline{\text { Debit }}&\underline{ \text { Credit} }\\ \text { Accounts receivable. } &\$140,000\\ \text { Allowance for doubtful aceounts. } &&\$890\\ \text { Sales } &&425,000\\ \text { Sales returns and allowances} &10,000&\\\end{array}$

Instructions
Prepare adjusting journal entries assuming that the estimate of uncollectibles is determined by using
a) 4% of gross accounts receivable, and
b) 1.5% of net sales.