Question 1 Entries for bad debt expense. The trial balance before adjustment of Risen Company reports the following balances: Credit Sales $ 1,800,000 Accounts Receivable 1,156,000 Selling Expenses 450,000 Sales Discounts 33,200 Allowance for Doubtful Accounts 37,300 Sales Returns and Allowances 56,000 Purchase Discounts 45,250 Cost of Goods Sold 720,000 Instructions (a) Prepare the entries for estimated bad debts assuming that doubtful accounts are estimated to be (1) 6% of gross accounts receivable and (2) 1% of net sales. (b) Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of $12,500 instead of a credit balance. How will this difference affect the journal entries in part (a) under both methods? (show the new journal entries)