Aaron Servicing showed the following partial unadjusted results at October 31, 2020, its year-end:

Account	Debit		Credit
Sales			$	1,730,000
Accounts receivable	$	156,000
Allowance for doubtful accounts		3,200

Part 1 Required: a. Assuming Aaron estimates bad debts to be 1.5% of sales, prepare the adjusting entry at October 31, 2020.

b. Show how accounts receivable would be shown on the October 31, 2020, balance sheet using your calculations in (a).

Part 2 Required: c. Instead of (a), assume that Aaron estimates bad debts to be 5% of outstanding accounts receivable. Prepare the adjusting entry at October 31, 2020.

d. Show how accounts receivable would be shown on the October 31, 2020, balance sheet using your calculations in (c).

View transaction list Journal entry worksheet Record the estimate for uncollectible accounts. Note: Enter debits before credits. General Journal Debit Credit Date Oct 31, 2020 Record entry Clear entry View general journal Partial Balance Sheet Assets Current assets View transaction list Journal entry worksheet 1 > Record the estimate for uncollectible accounts. Note: Enter debits before credits. General Journal Debit Credit Date Oct 31, 2020 Record entry Clear entry View general journal Partial Balance Sheet Assets Current assets