Borke Company has a credit balance of $3,500 in Allowance for Doubtful Accounts. The estimated bad debt expense under the percentage-of-sales basis is $4,450. The total estimated uncollectibles under the percentage-of-receivables basis is $6,150.

Prepare the adjusting entry under each basis.(Credit account titles are automatically indented when the amount is entered.Do not indent manually.)

Account Titles and Explanation

Debit

Credit

(Under the percentage-of-sales basis.)

(Under the percentage-of-receivables basis.)