Bradford Companys accounting records on December 31, 2016, provide the following information (prior to adjustment):

Cash sales	$ 93,100
Net credit sales	283,600
Total sales (net)	$376,700
Accounts receivable	126,300
Allowance for doubtful accounts	2,150	credit

Required:

1.

Prepare the journal entries to record the estimate of Bradfords bad debt expense for 2016 assuming:

A.	Bad debts are estimated to be 2% of net credit sales.
B.	Bad debts are estimated to be 5% of gross accounts receivable.

CHART OF ACCOUNTS

Bradford Companys

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
122	Allowance for Doubtful Accounts
141	Inventory
152	Prepaid Insurance
181	Equipment
198	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
231	Salaries Payable
250	Unearned Revenue
261	Income Taxes Payable

	EQUITY
311	Common Stock
331	Retained Earnings

	REVENUE
411	Sales Revenue

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
910	Income Tax Expense