Sheridan Company reports the following financial information before adjustments.

Accounts receivable DR 70,000

Allowance for doubtful accounts CR 400

Sales revenue (all on credit) CR 660,000

Sales returns and allowances DR 29,000

Prepare the journal entry to record Bad Debt Expense assuming Sheridan Company estimates the necessary allowance for doubtful accounts at

(a)3% of accounts receivable.(Credit account titles are automatically indented when the amount is entered. Do not indent manually.If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

(b)3% of accounts receivable, but the Allowance for Doubtful Accounts had a $2,700 debit balance.(Credit account titles are automatically indented when the amount is entered. Do not indent manually.If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)