3. Entries for bad debt expense (20 points) The trial balance on 12/31/2021 (before adjustment) of Risen Company reports the following balances: Accounts receivable Allowance for doubtful accounts Sales (all on credit) Sales returns and allowances Dr. Cr $300,000 $ 5,000 1,700,000 80,000 Instructions (a) Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 6% of gross accounts receivable. 300 000 0.06 = 18000 300000 18000 1700000 Acct receivable Allowance Sales Sales returns 80000 (b) Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of $5,000 instead of a credit balance. How will this difference affect the journal entry in part (a)? if allowance for doubtful accounts had a balance of $5000 instead of credit, it wo debit be an asset Instead of liability