The account balances of Sheridan Company at December 31, 2021, the end of the current year, show Accounts Receivable $198,000; Allowance for Doubtful Accounts $2,400 (credit); Sales $1,567,000; Sales Returns and Allowances $60,000; and Sales Discounts $22,000. Your answer is correct. Record the adjusting entry at December 31, 2021, assuming bad debts are estimated to be (1) 10% of accounts receivable, and (2) 1.5% of net sales. (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 O for the amounts.) No. Date Account Titles and Explanation Debit Credit Dec. (1) Bad Debt Expense 31 Allowance for Doubtful Accounts (To record estimate of uncollectible accounts.) Dec. (2) Bad Debt Expense 31 Allowance for Doubtful Accounts (To record estimate of uncollectible accounts.) 17400 22275 17400 22275