EXAMPLE 5.2 SALES ALLOWANCES At year end, GCD Advisors has an Accounts Receivable balance of $1,000,000. Based on past experience, GCD Advisors estimates that allowances will be made for 0.2% of this balance. The following January 18th, GCD grants an allowance of $1,500 to Metzler Enterprises as a result of a fate shipment in December Required: 1. Calculate the amount of sales allowances GCD estimates will be made in the following year related to current year sales 2. Prepare the adjusting journal entry to record the estimated sales allowances. 3. Prepare the journal entry to record GCD granting the allowance to Metzler Enterprises