The following information was abstracted from the 2017 financial statements of Jennings Company:

Sales $747,000 *

Accounts Receivable, December 31, 2017 128,000

Allowance for Doubtful Accounts 1,220 (credit balance)

Sales discounts 18,000 *

Sales returns 12,400 *

*30% related to credit sales

Prepare the adjusting entry for doubtful accounts expense under each of the following assumptions:

(a) 3 percent of current accounts receivable are uncollectible.

(b) 2.5 percent of net credit sales are uncollectible.

Please show procedure and T -accounts