The following is information taken from the June 30, 2014, balance sheet of Tippleton Company:

Part 1
During July, Tippleton Company recorded total sales of $850,000, all on credit. There were $30,000 of sales returns and allowances. Collections during July were $920,000. Total receivables Identified as being uncollectible and written off during July were $15,000. Tippleton estimates bad debts as 1% of net credit sales.
Required
Prepare the adjusting entry to record estimated bad debts for July.
Part 2
During August, total sales of $845,000 were recorded, all on credit. Sales returns and allowances totaled $14,000. Collections during the month were $710,000, which included the recovery of $1,950 from a customer account written off in a previous month. No accounts were written off during August. Tippleton Company changed its method of estimating bad debts to the balance sheet approach because the new accountant said it more accurately reflected uncollectible accounts. The resulting aging analysis determined total estimated uncollectible accounts at August 31 to be $14,250.
Required
Prepare the August 31 adjusting entry to record estimated bad debts for August.