3. Assume that a company's bad debts are estimated and recorded as 2% of Account receivable. Accounts receivable .... $125000

Sales revenue............ $1280000 Previous balance of Allowance for doubtful accounts ..... $1600 75% of sales was made on credit. a. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the balance sheet after adjustment. b. Prepare the entry to write off a $1,500 account receivable on January 1 of the next year. c. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the balance sheet immediately after writing off the account in part 2.