PROBLEMS IN ADJ U5TIMG ENTRIES FOR BAD DEBTS AND DEPRICIATIDM 1. The following are selected account balance taken from the trial balance of Lovola Companyr as of December 31, 2015: Debit Credit Accounts Receivable 160,000 Allowance for Doubtful Accounts 2,550 Sales 1,250,000 Sales Discount 24,000 Additional information revealed that 80% of the sales are on account and the sales returns and allowances were all related to credit sales. Give the adjusting entrv, the bad debts expense to be presented in the income statement and the net realizable value of the accounts receivable to be presented in the statement of nancial position based on the following independent cases: a) It is the policy of the company.r to provide 5% of net credit sales as uncollectible accounts. b] The allowance should be increased by 5% of accounts receivable. c] The allowance should be increased to 5% of the outstanding accounts receivable