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3. The trial balance before adjustment of Emerald Company reports the following balances: Dr. $300,000 Cr. Accounts receivable Allowance for doubtful accounts Sales (all on credit) Sales returns and allowances $ 5,000 1,700,000 80,000 Instructions (a) Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 6% of gross accounts receivable. (2 Points) (6) Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of $5,000 instead of a credit balance. How will this difference affect the journal entry in part (a)? (2 Points)