Determine the appropriate adjustments needed to account for Bad Debts. It's the end of August, 2020 and you are trying to determine how to adjust the Bad Debt Expense at month end. Below is your sales information for the month of August, 2020: Below is the ledger account balances for A/R and AFDA before you've made any adjusting entries: Required: A) Prepare month end adjusting entry using the income statement Approach. Assume you estimate Bad Debts to equal 1.5% of credit sales for the month. B) Prepare month end adjusting entry using the Balance Sheet Approach. Assume you estimate the Allowance for Doubtful Accounts to be 5% of Accounts Receivable. Prepare the journal entries needed for the following transactions. A) Feb 2, 2020 - The Accounts Receivable Department at the company has been unable to get a hold of Mr. Weich. He appears to have changed phone numbers, mailing address, and no one can seem to track him down. He has an outstanding balance of $11,000. B) July 5, 2020 - Your Accounts Receivable Department received a tip about Mr. Welch's location. They find him and confront him regarding his outstanding balance. Mr. Welch begrudgingly acknowledges that he still owes the money, but only has $2,000 in funds. You agree to accept the $2,000 payment and will not pursue the remaining $9,000