3. Assume the RAT Company estimates bad debts to be 3 % of net sales instead of using the aging method. Compute the bad debt expense if total sales are $425,000 and sales returns are $3,000 and sales discounts are $2,000 for the 2020 year. Assume all other information is the same as previously reported. a bad debt expense for 2020 (1.5 points) No journal entry is required here! b. Show how the AR section of the Balance Sheet would look at 12-31-20 after the adjustment is made for the bad debt expense under the net sales approach instead of the aging method. Assume all other information is the same as previously reported. This means the previous balance in the Allowance for Bad Debts is still a debit of $2,600. (1.5 points) Completing the T account below will help you set up the BS section. Balance Sheet Debts Allowance for Bad