Question 1. (40 points) On December 31 2019, the end of its fiscal year, ABC 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 using T-accounts: a) (20 points) Credit Debit $ 300,000 Accounts Receivable Allowance for Doubtful Accounts $5,000 b) (20 points) Credit Accounts Receivable Allowance for Doubtful Accounts Debit $ 300,000 2,000 Solution a) GENERAL JOURNAL ACCOUNT TITLES DATE DEBIT CREDIT Explanation: b) GENERAL JOURNAL ACCOUNT TITLES DATE DEBIT CREDIT Explanation