At the end of each year, a company uses the simplified balance sheet approach to estimate bad debts. On December 31, 1990, it has outstanding accounts receivable of \(\$ 57,000\) and estimates that \(3 \%\) will be uncollectible.

(a) Give the entry to record bad debts expense for 1990 under the assumption that Allowance for Doubtful Accounts had a \(\$ 350\) credit balance before the adjustment.

(b) Give the entry under the assumption that Allowance for Doubtful Accounts has a \(\$ 400\) debit balance before the adjustment.