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

Account Debit Credit

Accounts receivable $ $2,060,000$

Allowance for doubtful accounts $29,000$

Sales $($$$2,520,000$ cash sales$)$ $ $10,080,000$

Required:

$1.$ Prepare the adjusting entry needed in Corotel$$s books to recognize bad debts under each of the following independent assumptions.

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

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

$2.$ Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the December $31,2023$ balance sheet given the facts in requirement $1($a$).$

$3.$ Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the December $31,2023$ balance sheet given the facts in requirement $1($b$).$