1&2

Debit Credit Accounts receivable $131,000 Allowance for doubtful accounts $1,500 Sales 674,000 Sales returns and allowances 8,000 Prepare Journal entries assuming that the estimate of uncollectible is determined by taking (1) 6% of gross accounts receivable (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (2) 2% of gross accounts receivable (assuming a $1,500 debit allowance account balance). (Credit account titles are automatically indented when the amount is entered. Do not Indent manually.)