5 On January 1, LITTLE Co. had Accounts Receivable of $34,000 and Allowance for Bad Debts had a credit balance of $3,000. During the year, LITTLE Co. recorded the following: a) Sales of $189,000 ($165,000 on account; $24,000 for cash); b) Collections on account, $133,000; c) write-off of uncollectible receivables, $2,800. 1) Journalize its adjustment to record bad debts expense assuming it estimates bad debts as 1% of credit sales. 2) Using T-account, show Allowance for Bad Debts of the year