How to answer the exercises (item 1 and 2) on Recording Bad Debts? Kindly provide clear and organize answers with explanations on what is asked in each item. Thank and God bless!

Recording Bad Debts. 1. Sunshine Company reports the following financial information before adjustments: Accounts Debit Credit Accounts Receivable P 260,000 Allowance for doubtful accounts P 2,000 Sales (all on account) 900,000 Sales Returns and Allowances 50,000 Required: Prepare journal entries to record the bad debts expense assuming Sunshine Company estimates bad debts at 1) 2% of net sales 2) 5% of net sales 2. At the end of 2015, Moon Company has accounts receivable of P900,000 and an allowance for doubtful accounts of P40,000. On January 16, 2016, Moon Company determined that its receivable from Sun Company of P8,000 will not be collected, and management authorizes its write-off. Required: a. Prepare the journal entry for Moon Company to write off Sun Company receivable. b. The amount of net realizable value of Moon Company's accounts receivable before the write- off of Suns receivable? c. The amount of net realizable value of Moon Company's accounts receivable after the write-off of Suns receivable