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Alpaca Consulting Inc reported net sales of $1,200,000 for the year. Also, at at the end of the year, the company reported balances of

Alpaca Consulting Inc reported net sales of $1,200,000 for the year. Also, at at the end of the year, the company reported balances of $360,000 and $3,400 of accounts receivables and allowance for doubtful accounts, respectively. All amounts and balances have normal balances. REQUIRED: 1. Assume the company estimates its bad debts as 1.20% of net sales. Record the required adjusting entry to record bad debts. The journal must be properly formatted. 2. Assume the company estimates its uncollectible accounts as 5% of accounts receivable. Record the required adjusting entry to record bad debts. The journal must be properly formatted.

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