The trial balance before adjustment of Risen Company reports the following balances: Accounts receivable Debit $100,000 Allowance for doubtful accounts Credit $2,500 Sales (all on credit) Credit $750,000 Sales returns and allowances Debit $40,000 Instructions (a) Prepare the entries for estimated bad debts assuming that doubtful accounts are estimated to be (1) 6% of gross accounts receivable and (2) 1% of net sales. (b) Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of $2,500 instead of a credit balance. How will this difference affect the journal entries in part (a)?