QUESTION 56 At December 31 of the current year, a company reported the following: Total sales for the current year: $780,000, includes $160,000 in cash sales. Accounts receivable balance at Dec. 31, current year: $190,000. Bad debts written off during the current year: $6,800. Balance of Allowance for Doubtful Accounts at January 1, current year: $8,300 credit. Prepare the necessary adjusting entries to record bad debts expense assuming this company's bad debts are estimated to equal: (a) 1.5% of credit sales. (b) 5% of accounts receivable. T T T Arial 3 (12pt) T- - E - RES 's