PEI Potato Corporations unadjusted trial balance included the following accounts:

Accounts	Debit	Credit
Accounts Receivable	$140,000
Allowance for Doubtful Accounts		$890
Sales		$425,000
Sales Returns and Allowances	10,000

Required

Prepare adjusting journal entries assuming that the estimate of uncollectible is determined by using

1. 4% of gross accounts receivable, and

2. 1.5% of net sales