The following information is provided:

Unadjusted balance in Allowance for Doubtful Accounts

$$1,100$

$($debit$)$

Accounts Receivable, December $31$

$245,500$

Sales

$829,500$

Required:

a$.$ Prepare the adjusting entry if bad debts are estimated to be $1\mathrm{.}5\%$ of net sales.

b$.$ Compute the amount of the adjusting entry if bad debt is estimated to be $3\%$ of ending accounts receivable.