The trial balance before adjustment for ABC co. reports the following balances

Dr. Cr.

Accounts receivable $250,000

Allowance for doubtful accounts $500

Sales (all on credit) $1,180,000

Sales returns and allowance $150,000

Sales discount $30,000

Instructions: Prepare the entries for bad debt expense assuming the uncollectible amount be

1) 2% of gross account receivable and

2) 0.5% of net sales.