2. As of Dec 31, 2019, Company ABC reports the following results for the year. Cash Sales $1,500,000 Credit Sales $1,000,000 Accounts Receivable $500,000 debit balance Allowance for Doubtful Accounts $3,500 credit balance a) Prepare the adjusting entry to recognize bad debts assuming bad debts are estimated to be 2% of total sales. Then show how Accounts Receivable and the Allowance for Doubtful Accounts appear on the Dec 31, 2019 Balance Sheet. Adjusting Entry is: Debit Credit Balance Sheet Current Assets: Accounts Receivable Adjusting Entry is. Debit Credit $ Balance Sheet Current Assets: Accounts Receivable $ $ Less Allowance for Doubtful Accounts S. NBV b) Prepare the adjusting entry to recognize bad debts assuming an aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Then show how Accounts Receivable and the Allowance for Doubtful Accounts appear on the December 31, 2019 Balance Sheet $ Adjusting Entry is: Debit Credit Balance Sheet Current Assets: Accounts Receivable Less Allowance for Doubtful Accounts NBV