Entries for Bad Debt Expense
a Trial Balance Before Adjustment

Entries for bad debt expense
A trial balance before adjustment included the following:
$\begin{array}{llcc} \text { } &\underline{\text { Debit }}&\underline{ \text { Credit} }\\ \text { Accounts receivable. } &\$120,000\\ \text { Allowance for doubtful aceounts. } &&\$730\\ \text { Sales } &&51,000\\ \text { Sales returns and allowances} &8,000&\\\end{array}$

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Instructions
Prepare adjusting journal entries assuming that the estimate of uncollectibles is determined by taking
a) 5% of gross accounts receivable, and
b) 1% of net sales.