bad debt ( uncollectible A/R )

2. At December 31 of the current year, a company reported the following: Total sales for the current year: $780,000 includes $160,000 in cash sales. Balance of Accounts receivable balance at Dec. 31, current year: $190,000. Bad debts written off during the current year: $6,800. Balance of Allowance for Doubtful Accounts at January 1, current year: $8,300. Prepare the necessary adjusting entries to record bad debts expense assuming this company's bad debts are estimated to equal: (a) 1.5% of credit sales. (b) 5% of accounts receivable