El Mona pic reports the following financial information before adjustments. Debit 70,000 Accounts receivable Allowance for doubtful accounts Sales Sales returns and allowances 6,000 Credit 1500 400,000 Required 1) Prepare the journal entry to record Bad Debt Expense assuming Duncan Company estimates bad debts at 5% of accounts receivable. [2 mark] 2) Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of 2,500 instead of a credit balance. How will this difference affect the journal entries in part (a)? Show your calculations. [2 mark]