Movie Set Up Company's trial balance before adjustment included the following information:

Debit Credit

Accounts Receivable $1,245,000

Allowance for Doubtful Accounts 18,245

Sales $10,510,000

Sales Returns and Allowances 48,000

Prepare journal entries assuming that the estimate of uncollectibles is determined by taking:

1.) 3.5% of gross accounts receivable

2.) 0.5% of net sales.