Bella Beauty Company has provided the following partial unadjusted trial balance for its fiscal year ended April 30, 2016.

REQUIRED:

1. Assume that the company estimates its bad debts as 1.20% of its net sales.
   • Record the adjusting entry to record the bad debts expense
   • What is the ending (adjusted) balance in the allowance for Doubtful Accounts account?
2. Assume that the company estimates its bad debts as 4.00% of its accounts receivable.
   • Record the adjusting entry to record the bad debts expense
   • What is the ending (adjusted) balance in the allowance for Doubtful Accounts account?

CREDIT $ 7,500 BELLA COMPANY PARTIAL TRIAL BALANCE APRIL 30, 2016 DEBIT Cash & Cash Equivalents S 320,000 Accounts Receivable 500,000 Allowance for Doubtful Accounts Merchandise Inventory 250,000 Other current assets 96,000 Sales Sales Discounts 18,000 Sales Returns and Allowances 24,000 Cost of Goods Sold 750,000 Selling Expenses 169,050 1,200,000