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I need help please make sure you following intructions !! double check your answers I Purdue Inc. s trial balance reflects the following balances before

I need help please make sure you following intructions !! double check your answers

I Purdue Inc.s trial balance reflects the following balancesbefore adjusting entries are made:

Dr. Cr.

Accounts receivable$450,000

Allowance for doubtful accounts$ 7,500

Sales revenue (all on credit)2,550,000

Sales returns and allowances120,000

Instructions

(a)Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 4% of gross accounts receivable.

(b)Prepare the entry for estimated bad debts under the same assumptions as (a), except that the Allowance for Doubtful Accounts has a debit balance of $7,500 instead of a credit balance.

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