Alquds com undecided about which base to use in estimating uncollectible accounts. On December $31,2021,$ the balance in Accounts Receivable was $$924,000$ and net credit sales amounted to $$8,100,000$ during $2021.$ An aging analysis of the accounts receivable indicated that $$93,000$ in accounts are expected to be uncollectible. Past experience has shown that about $1\%$ of net credit sales eventually are uncollectible.

Instructions

Prepare the adjusting entries to record estimated bad debt expense using the

$(1)$ percentage of sales basis.

$(2)$ the percentage of receivables basis under each of the following independent assumptions:

$($a$)$ Allowance for Doubtful Accounts has a credit balance of $$6,900$ before adjustment.

$($b$)$ Allowance for Doubtful Accounts has a debit balance of $$1,110$ before adjustment.