At the beginning of 2017, EZ Tech Company's Accounts Receivable balance was $143,000, and the balance in Allowance for Doubtful Accounts was $2,450. EZ Tech's sales in 2017 were $1,070,000, 90% of which were on credit. Collections on account during the year were $690,000.The company wrote off $4,000 of uncollectible accounts during the year.

a. Identify and analyze the adjustments to recognize bad debts assuming that bad debts expense is 3% of credit sales.

b. Identify and analyze the adjustments to recognize bad debts assuming that amounts expected to be uncollectible are 6% of the year-end accounts receivable.