AR Debit: $

Allowance for doubtful accounts Credit: $

Sales Revenue All on credit Credit: $

Sales returns and allowances Debit: $

Please answer the following questions:

Prepare the journal entry for estimated bad debts assuming that doubtful accounts are estimated to be of gross accounts receivable.

Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of $ instead of a credit balance. How will this difference affect the journal entry?