Required: 1. Prepare the adjusting entry for this company to recognize bad debts under each of the following independent assumptions. a. Bad debts are estimated to be 4% of credit sales b. Bad debts are estimated to be 3% of total sales c. An aging analysis estimates that 7% of year-end accounts receivable are uncollectible Adjusting entries (all dated December 31, 2015). (Round your final answers to the nearest whole dollar.) View transaction list View journal entry worksheet No Transaction Credit General Journal Bad debts expense Allowance for doubtful accounts Debit 140.640 140.640 145 594 Bad debts expense Allowance for doubtful accounts Bad debts expense Allowance for doubtful accounts 2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2015 balance sheet facts given the facts in part 1a: & Answer is not complete. Current assets Accounts receivable Less Allowance for doubtful accounts $ 1,065,348 $ 1,065,348