(1) The Dolton Sign Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 2.0% of net credit sales will eventually be uncollectible. Selected account balances at December 31, 2022: Net Credit Sales Accounts Receivable Allowance for Doubtful Accounts (debit) REQUIRED: Prepare the adjusting entry on December 31, 2022, to recognize bad debts expense. Account 12/31/2022 $600,000 160,000 800 DOLTON SIGN COMPANY GENERAL JOURNAL Account Debit (2) The Cowl Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 5.0% of accounts receivable will eventually be uncollectible. Selected account balances at December 31, 2022: 12/31/2022 $800,000 260,000 800 Credit Net Credit Sales Accounts Receivable Allowance for Doubtful Accounts (debit) REQUIRED: Prepare the adjusting entry on December 31, 2022, to recognize bad debts expense. COWL COMPANY GENERAL JOURNAL Debit Credit

(1) The Dolton Sign Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 2.0% of net credit sales will eventually be uncollectible. Selected account balances at December 31, 2022: REQUIRED: Prepare the adjusting entry on December 31, 2022, to recognize bad debts expense. (2) The Cowl Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 5.0% of accounts receivable will eventually be uncollectible. Selected account balances at December 31, 2022: REQUIRED: Prepare the adjusting entry on December 31,2022 , to recognize bad debts expense