Longbine Company's ledger at the end of the current year shows Accounts Receivable of $132,000. Instructions

1. If Allowance for Doubtful Accounts has a credit balance of $4,500 in the trial balance and bad debts are expected to be 7% of accounts receivable, journalize the adjusting entry for the end of the period.

2. If Allowance for Doubtful Accounts has a debit balance of $4,500 in the trial balance and bad debts are expected to be 7% of accounts receivable, journalize the adjusting entry for the end of the period.