II. On December 31, 2002, MidComm's records show the following results for the year:

Cash sales$1,905,000

Credit sales... 5,682,000

In addition, its unadjusted trial balance includes the following items:

Accounts receivable$1,270,100 debit

Allowance for doubtful accounts 16,580 debit

1. Prepare the adjusting entry for MidComm to recognize bad debts under each of the following independent assumptions:

a. Bad debts are estimated to be 2% of credit sales.

b. Bad debts are estimated to be 1% of total sales.

c. Analysis suggests 5% of accounts receivable at year-end are uncollectible.

2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on the December 31, 2002, balance sheet given the facts in part (1a).

3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on the December 31, 2002, balance sheet given the facts in part (1c).