ction 1 Lialy Products Company is undecided about which basis to use in estimating uncollectible accounts. On December 31 2019, the balance in Accounts Receivable was $400,000 and net credit sales amounted to 19.000.000 during 2019. The analysis of the accounts receivable indicated that $20,000 in accounts are expected to be uncollectible Past expenence has shown that about 1% of net credit sales eventually are uncollectible Prepare the adjusting entries to record estimated bad debts expense using the: 1. Percentage of sales basis, and 2. percentage of receivables basis under each of the following independent assumptions: A. Allowance for Doubtful Accounts has a credit balance of $3,000 before adjustment B. Allowance for Doubtful Accounts has a debit balance of $1000 before adjustment EC2 44 B