3. A company had the following items and amounts in its unadjusted trial balance as of December 31 of the current year:

	Debit	Credit
Cash sales		$188,000
Credit sales		$275,000
Accounts receivable	$76,000
Allowance for doubtful accounts	$1,000

a. Prepare the adjusting journal entry to estimate bad debts expense assuming an aging analysis estimates that 8% of the outstanding accounts receivable will be uncollectible.

b. Show the Allowance for Doubtful Account and the Bad Debt Expense T accounts.