E7-7B(Recording Bad Debts) Rodriguez Company reports the following financial information before adjustments. Debits: Accounts Receivable $25,000, Sales Returns and Allowances 12,500. Credits: Allowance for Doubtful Accounts $ 500, Sales (all on credit) 225,000. Instructions: Prepare the journal entry to record Bad Debt Expense assuming Rodriguez Company estimates bad debts at: (a)3% of net sales and (b)8% of accounts receivable