Part 4: (total 10 points) A company had the following items and amounts in its unadjusted trial balance as of December 31 of the current year: Debit Credit Cash sales...... Credit sales....... $1,025,000 1,342,000 Accounts receivable....... $575,000 Allowance for doubtful accounts. 7,500 3 Requirement: Prepare the adjusting entry for this company to recognize bad debts under each of the following independent assumptions. 1. Bad debts are estimated to be 2.5% of credit sales. 2. Bad debts are estimated to be 1.5% of total sales. 3. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible