(Bad Debt)

The following information is obtained from the accounting records of Becker Inc.

Sales..............................................................................................$750,000

Accounts Receivable December 31, 2011.....................................$125,000

Allowances for Doubtful Accounts.................................................$1,300 (CR)

Sales Discount..............................................................................$50,000

Sales Return and Allowances.......................................................$12,000

Create the adjusting entries for the allowance for doubtful accounts under the following assumptions:

(a) 2% of the current accounts receivables are uncollectible.

(b) 2.5% of net sales are uncollectible.