On December 31, 2020, Corotel Company's year-end, the unadjusted trial balance included the following items: Credit Account Accounts receivable Allowance for doubtful accounts Sales ($2,160,000 cash sales) Debit $2,020,000 25,000 $8,640,000 29:55 Required: 1. Prepare the adjusting entry needed in Corotel's books to recognize bad debts under each of the following independe 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, 2020, will become uncollectible. View transaction list Journal entry worksheet