I Purdue Inc.'s trial balance reflects the following balances before adjusting entries are made: 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. (c) Explain why generally accepted accounting principles require the allowance method rather than the direct write-off method for recognizing uncollectible accounts