Rexbilt Company uses the allowance method of handling credit losses. it estimates losses at 2% of credit sales, which were $600,000 this year. At December 31 of this year, the has a $1,200 credit balance before adjustment. Required: a. Give the adjusting entry to record bad debts expense for this year. b. What net amount of accounts receivable would appear on the December 31 balance sheet this year? c. Assume that Rexbilt Company uses aged accounts receivable as a basis of estimating credit losses, instead of a percent of credit sales. If the firm estimates that $7,600 of the accounts will prove uncollectible, what adjusting entry would Rexbilt Company make to record the bad debts expense for this year?