And prepare general journal and general ledger for each of the two steps.

Company A has a normal balance of $2,200 in Allowance for Doubtful Accounts before adjustment. The estimated uncollectibles under the percentage of accounts receivable method is $7,100. 1. Prepare the appropriate adjusting entry based on this information in the Accounting Equation below (row 15) 1. Provide an appropriate and brief description. 2. Add account names to the appropriate Accounting Equation elements below (as necessary) 3. Enter the correct entries for each account that must be updated $97,800.00 + Liabilities $0.00 Owners' Equity 8,000 $97,800.00 89,800 Assets $97,800.00 Allowance for Doubtful Accounts -2,200 Accounts Receivable 100,000 Retained Earnings 3,000 Common Stock 5,000 Revenue Starting balances 89,800 10/31 Account Totals 100,000 -2,200 0 5,000 3,000 89,800 2. Consider the same situation as above, but instead of a normal balance in Allowance for Doubtful Accounts before adjustment Company A has the balance shown below. Liabilities $0.00 Owners' Equity 8,000 $101,950.00 93,950 Assets $101,950.00 Allowance for Doubtful Accounts 1.950 Accounts Receivable 100,000 Common Stock 5,000 Retained Earnings 3,000 Revenue 93,950 Starting balances 10/31 Account Totals 100,000 1,950 0 0 0 + 5,000 3,000 93,950 0 0 Company A has a normal balance of $2,200 in Allowance for Doubtful Accounts before adjustment. The estimated uncollectibles under the percentage of accounts receivable method is $7,100. 1. Prepare the appropriate adjusting entry based on this information in the Accounting Equation below (row 15) 1. Provide an appropriate and brief description. 2. Add account names to the appropriate Accounting Equation elements below (as necessary) 3. Enter the correct entries for each account that must be updated $97,800.00 + Liabilities $0.00 Owners' Equity 8,000 $97,800.00 89,800 Assets $97,800.00 Allowance for Doubtful Accounts -2,200 Accounts Receivable 100,000 Retained Earnings 3,000 Common Stock 5,000 Revenue Starting balances 89,800 10/31 Account Totals 100,000 -2,200 0 5,000 3,000 89,800 2. Consider the same situation as above, but instead of a normal balance in Allowance for Doubtful Accounts before adjustment Company A has the balance shown below. Liabilities $0.00 Owners' Equity 8,000 $101,950.00 93,950 Assets $101,950.00 Allowance for Doubtful Accounts 1.950 Accounts Receivable 100,000 Common Stock 5,000 Retained Earnings 3,000 Revenue 93,950 Starting balances 10/31 Account Totals 100,000 1,950 0 0 0 + 5,000 3,000 93,950 0 0