4. Gonzalez Company estimates from past experience that about 1% of credit sales become uncollectible. if net credit sales are $800,000 in 2012, it records bad debt expense as follows. Show the journal entry. 5. Company reports the following financial information before adjustments. Cr. Dr. $160,000 Accounts Receivable Allowance for Doubtful Accounts $ 2,000 800,000 Sales (all on credit) Sales Returns and Allowances 50,000 Instructions: Prepare the journal entry assuming Company estimates bad debts at (a) 1% of net sales. +L