Exercise 2: Brule Co. has the following information: credit sales are 200,000, sales return and allowance are 10%, account receivables are $300,000, and allowance for a doubtful account has a debit balance of $10,000. Calculate bad debt expense and prepare the appropriate journal entry under the following cases. a) Bad debts are estimated to be 5% of credit sales b) Bad debts are estimated to be 5% of receivables.