Problem 8-7A Uncollectible accounts LO2, 3 Aaron Servicing showed the following partial unadjusted results at October 31, 2020, its year-end: Debit Account Sales Accounts receivable Allowance for doubtful accounts Credit $1,740,000 $157,000 3,200 Part 1 Required: a. Assuming Aaron estimates bad debts to be 1.5% of sales, prepare the adjusting entry at October 31, 2020. View transaction list View journal entry worksheet No Date General Journal Credit 1 Oct 31, 2020 Bad debt expense Allowance for doubtful accounts Debit 26,100 26,100 b. Show how accounts receivable would be shown on the October 31, 2020, balance sheet using your calculations in (a). Partial Balance Sheet Assets Current assets: Save Required: c. Instead of (a), assume that Aaron estimates bad debts to be 5% of outstanding accounts receivable. Prepare the adjusting entry at October 31, 2020. View transaction list Journal entry worksheet