4. At the end of the current year and before making entry on the bad debts expense, TULIPS Company reported a P20,000 debit balance in its allowance for bad debts. For the current year, the Company reported net credit sales of P5,000,000, while ending receivables amounted to P2,500,000, which can be aged as follows: Age Balance Less than one month P1,750,000 More than one month but less than a year 500,000 More than a year 250,000 P2,500,000 Required: Under each of the following scenarios, compute for the (a) bad debts expense; and (b) the allowance for bad debts after the adjustment: 1. Bad debts expense is estimated at 3.50% of credit sales 2. Allowance for bad debts is 5% of accounts receivable balance. 3. Allowance for bad debts is based on the estimated percentage per age bracket as follows