Bradford Companys accounting records on December 31, 2019, provide the following information (prior to adjustment):

Cash sales	$ 93,100
Net credit sales	273,600
Total sales (net)		$366,700
Accounts receivable		131,300
Allowance for doubtful accounts		2,450	(credit)

Required:

1.

Prepare the journal entries to record the estimate of Bradfords bad debt expense for 2019 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.

2.

Next Level Discuss the advantages and disadvantages of the balance sheet and income statement approaches to estimating bad debt.