At December 31, Folgeys Coffee Company reports the following results for its calendar year.

Cash sales	$	901,000
Credit sales		301,000

Its year-end unadjusted trial balance includes the following items.

Accounts receivable	$	126,000	debit
Allowance for doubtful accounts		5,100	debit

Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 4% of credit sales, (2) 2% of total sales and (3) 7% of year-end accounts receivable.

a. Record Bad Debts Expense assuming uncollectibles are estimated to be 4% of credit sales.

b. Record Bad Debts Expense assuming uncollectibles are estimated to be 2% of total sales.

c. Record Bad Debts Expense assuming uncollectibles are estimated to be 7% of year-end accounts receivable.