Terrace Company reports the following financial information before adjustments $($ $ in $000).$

Accounts receivable

Allowance for doubtful accounts

Sales revenue $($all on credit$)$

Sales returns and allowances

$\backslash$table$[[$Dr$.,$Cr$.],[$$$72,000,],[,$$$,400],[,700,000],[30,000,]]$

Instructions

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

a$)3\%$ of accounts receivable and

b$)3\%$ of accounts receivable, but the Allowance for Doubtful Accounts had a $$3,200$ debit balance.

$\backslash$table$[[$Date$,$Account Titles and Explanation,Debit,Credit$],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$