7 On December 31, 2021, the balance in Megan's Products Accounts Receivable was $680,000 and net credit sales amounted to $3,800,000 during 2021 An aging analysis of the accounts receivable indicated that $40,000 in accounts are expected to be uncollectible. Instructions Prepare the adjusting entries to record estimated bad debt expense using the percentage-of-receivables basis under each of the following independent assumptions. You need not include dollar signs, but please do insert commas when needed (a) Allowance for Doubtful Accounts has a credit balance of $3,200 before adjustment. (b) Allowance for Doubtful Accounts has a debit balance of $730 before adjustment (1) Percentage-of-receivables basis: (a) Bad Debt Expense. Allowance for Doubtful Accounts (b) Bad Debt Expense. Allowance for Doubtful Accounts H For Blank 1