27. The trial balance before adjustment of Julie Company reports the following balances: Dr. Cr. Accounts receivable $100,000 Allowance for doubtful accounts $ 2,500 Sales (all on credit) 750,000 Sales returns and allowances 40,000 Instructions (10 points) (a) Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 5% of gross accounts receivable (b) Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 2% of net sales, (c) Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of $2,500 instead of a credit balance. How will this difference affect the journal entries in part (a)? (d) Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of $2,500 instead of a credit balance. How will this difference affect the journal entries in part (b)