4. The trial balance before adjustment of Klein Company reports the following balances: Dr Cr Accounts receivable $150,000 Allowance for doubtful accounts $ 2,500 Sales 850,000 Sales returns and allowances 40,000 a. Prepare the adjusting entries for estimated bad debts assuming that uncollectible accounts are estimated to be (1) 6% of gross accounts receivable (3 points) (2) 1% of net sales. (3 points) Debit Credit Item b. Klein converted a $12,000 customer A/R to a 5% note receivable on November 1, due in 6 months. Prepare the following journal entries: (3 points each) (1) December 31 adjusting entry (2) Receipt of the cash from the customer in payment of the note on May 1. Debit Credit Item