ACC112 Q7

this is the whole question please help me answer it.

Al Bakara company report the following results for its calendar year December 31,2021. Cash sales 200,000 Credit sales, 180,000 Account receivable 22,000 (debit) Account payable 46,000 (credit) Allowances for doubtful accounts 2,000 (debit) The company estimates bad debts to be 2% of annual total sale. Required: 1- Prepare the adjusting entry to record the estimated bad debt. Answer in the following format [Note: This is just an example and is not related to the question] Jan 1 Dr. Cash.............. .120 Cr. Owner capital. 120 2- Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on Al Bakara company December 31 balance sheet For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac), BIUS Paragraph Arial 10pt EEA Ix