1. A business has the following financial data at the end of December:

Accounts receivable 100,000 Sales revenue-cash 25,000

Allowance for doubtful accounts 1,000 (credit balance) Sales revenue-credit125,000

1. Assume the business uses the income statement method (percent of sales method) and a 0.7000% estimation rate. Prepare any necessary journal entries on December 31.

2. Assume the business uses the balance sheet method (percent of accounts receivable method) and a 0.7000% estimation rate. Prepare any necessary journal entries on December 31.