Record the following transactions indicating account type (A= asset, C-A = contra-asset, L = liability, R= revenue, E = expense), direction (+ for increase, - for decrease), accounts titles, and dollar amounts debited and credited. Example: Watson Company sold $80,000 of merchandise on account (note that debit is first and credit is indented). Direction Credit Account Type R Account Titles Accounts Receivable Debit 45,000 $ Sales $ 45,000 Transaction 1: Watson Company wrote off $7,800 owed by a customer as a bad debt. Account Type +/- Account Titles Debit Credit Transaction 2: At the end of the year, Watson Company had a balance of $45,000 in Accounts Receivable. The firm estimates that bad debts will be 5% of that balance. In addition, there is currently a credit balance of $900 in Allowance for Doubtful Accounts (AFDA). Record the adjusting entry for bad debts. Account Type Account Titles Debit Credit