Exercise 7-9

The trial balance before adjustment of Windsor Inc. shows the following balances.

		Dr.		Cr.
Accounts Receivable		$96,400
Allowance for Doubtful Accounts		3,090
Sales Revenue (all on credit)				$612,900

Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 5% of gross accounts receivable and (b) 6% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,797 credit balance. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)