Bradford Company's accounting records on December 31, 2013, provide the following information (prior to adjustment):

Required:
1. Prepare the journal entries to record the estimate of Bradford's bad debt expense for 2013 assuming:
a. Bad debts are estimated to be 2% of net credit sales.
b. Bad debts are estimated to be 5% of gross accounts receivable.
2. Next Level Discuss the advantages and disadvantages of the balance sheet and income statement approaches to estimating bad debt.

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$93,100 262,900 Cash sales Net credit sales Total sales (net) Accounts receivable Allowance for doubtful accounts $356,000 126,300 2,150 (credit)