Name Chapter 8 Part 2 Checkpoint #2 Oscar Company uses the allowance method to account for bad debts. On December 31, 2020, the following information was available: Net Sales $2,440,000 Accounts Receivable $920,000 REQUIRED: A. Give the December 31, 2020 adjusting entry required under the allowance method, assuming Case 1: Bad debts are estimated at 2% of net sales: the unadjusted balance of the Allowance for Bad Debts account is $15,600 credit. Case 2: Bad debts are estimated at 2% of net sales, the unadjusted balance of the Allowance for Bad Debts account is $16,400 debit. Case 3: Bad debts are estimated at 6% of accounts receivable; the unadjusted balance of the Allowance for Bad Debts account is $15,600 credit. Case 4: Bad debts are estimated at 6% of accounts receivable, the unadjusted balance of the Allowance for Bad Debts account is $16,400 debit GENERAL JOURNAL Account Titles DR CR Case 1 Date Case 2 Case 3 Case 4 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 Bad Debts Allowance for Cash Realizable Value Case Expense Bad Debts of Accounts Receivable Sheet