Module 8 Checkpoint #3 Name Oscar Company uses the allowance method to account for bad debts. On December 31, 2020, the following information was available: Net Sales $4,820,000 Accounts Receivable $1,140,000 REQUIRED: A. Give the December 31, 2020 adjusting entry required under the allowance method, assuming Case 1: Bad debts are estimated at 1% of net sales, the unadjusted balance of the Allowance for Bad Debts account is $8,700 credit. Case 2: Bad debts are estimated at 19% of net sales: the unadjusted balance of the Allowance for Bad Debts account is $7.500 debit. Case 3: Bad debts are estimated at 4% of accounts receivable, the unadjusted balance of the Allowance for Bad Debts account is $8.700 credit Case 4: Bad debts are estimated at 4% of accounts receivable: the unadjusted balance of the Allowance for Bad Debts count is 55 debit GENERAL JOURNAL Account Titles DR CR Case 1 Case 2 Case 3 B. Based on your journal entries from Part A, indicate the balances that would be reported on the financial statements on December 31, 2020: On the income On the Balance Statement: Sheet: Bad Debts Allowance for Cash Realizable Value Case Expense Bad Debts of Accounts Receivable 2