17. NATO Companys ledger at the end of 2020 shows Accounts Receivable of $780,000.

a. If Allowance for Doubtful Accounts has a credit balance of $7,500 in the trial balance and bad debts are expected to be 4% of accounts receivable, journalize the adjusting entry for the end of the period.

b. If Allowance for Doubtful Accounts has a debit balance of $7,500 in the trial balance and bad debts are expected to be 4% of accounts receivable, journalize the adjusting entry for the end of the period.