The accounts below were taken from Eustace Ley Inc.s Trial Balance at December 31, 2016.

	Debit	Credit
Accounts Receivable	$192,750
Allowance for Doubtful Accounts		$3,500
Net credit Sales		$712,800

Required:

(b) Prepare the journal entries for estimated bad debts assuming that the allowance for doubtful accounts is provided for, on the following bases:

(i) 2% of net sales

(ii) 5% of gross accounts receivable