Question 1. (40 points) On December 31 2019, the end of its fiscal year, XYZ Company estimates bad debts at 3% of accounts receivable. Required: Prepare the necessary journal entry to record Bad Debt Expense under the following scenarios and explain your solution: a) (20 points) Debit Credit Accounts Receivable $ 200,000 Allowance for Doubtful Accounts $ 3.000 b) (20 points) Credit Accounts Receivable Allowance for Doubtful Accounts Debit $ 200,000 1,500 Solution a) GENERAL JOURNAL DATE ACCOUNT TITLES DEBIT CREDIT Explanation: 3/5 b) GENERAL JOURNAL DATE ACCOUNT TITLES DEBIT CREDIT Explanation