Exercise 7-7 Larkspur Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $154,900 Allowance for Doubtful Accounts $3,440 Sales Revenue (all on credit) 805,100 Sales Returns and Allowances 52,370 Prepare the journal entry to record bad debt expense assuming Larkspur Company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,580 debit balance. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Credit No. Account Titles and Explanation Debit (a) (b) SHOW LIST OF ACCOUNTS