On December $31,2023,$ Corotel Company's year$-$end, the unadjusted trial balance included the following items:

Required: $$

Prepare the adjusting entry needed in Corotel's books to recognize bad debts under each of the following independent

assumptions. $$

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

b$.$ An analysis suggests that $5\%$ of outstanding accounts receivable on December $31,2023,$ will become uncollectible.

Journal entry worksheet

Record the estimate for uncollectible accounts.

Note: Enter debits before credits.