QUESTION 1. (30 POINTS) Accounts Receivable of Gamma Co. have a $200,000 debit balance on December 31, 2020. The company estimates bad debts at 5% of accounts receivable. Required Prepare the necessary journal entry to record Bad Debt Expense assuming that Allowance for doubtful Accounts has a: a) credit balance of $6,000. b) debit balance of $1,000. c) zero balance. (10 points) (10 points) (10 points) For each situation explain your solution using T-accounts Solution a) JOURNAL ENTRY DATE ACCOUNT TITLES DEBIT CREDIT Explanation using T-accounts: b) JOURNAL ENTRY DATE ACCOUNT TITLES DEBIT CREDIT Explanation using T-accounts: c) JOURNAL ENTRY DATE ACCOUNT TITLES DEBIT CREDIT Explanation using T-accounts