Exercise 5.8 Presentation of Receivables in the Partial Balance Sheet A trial balance before adjustment included the following: Instructions: 1. Prepare journal entry to recognize 10,000 of accounts receivable are written off due to the bankruptcy of the client (letter delivered confirming the bankruptcy). Show the effect of the entry on accounting equation. 2. Prepare adjusting journal entries for bad debt expense and also show the effect of the entries on accounting equation, assuming that the estimate of uncollectibles is determined by applying: a) 5% of gross accounts receivable, or b) 1% of net sales. Exercise 5.8 Presentation of Receivables in the Partial Balance Sheet A trial balance before adjustment included the following: Instructions: 1. Prepare journal entry to recognize 10,000 of accounts receivable are written off due to the bankruptcy of the client (letter delivered confirming the bankruptcy). Show the effect of the entry on accounting equation. 2. Prepare adjusting journal entries for bad debt expense and also show the effect of the entries on accounting equation, assuming that the estimate of uncollectibles is determined by applying: a) 5% of gross accounts receivable, or b) 1% of net sales