The trial balance before adjustment of Risen Company reports the following balances: Dr. Cr. $300,000 Accounts receivable Allowance for doubtful accounts $ 5,000 Sales (all on credit) 1,700,000 Sales returns and allowances 80,000 Instructions (a) Prepare the journal entry for estimated bad debts assuming that doubtful accounts are estimated to be 6% of gross accounts receivable. (b) Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of $5,000 instead of a credit balance. How will this difference affect the journal entry in part (a)? (c) What is the theoretical justification for the Allowance method used to estimate bad debts as compared to the Direct Write- off method of recording bad debts? X, BIYA-AI E33 - 22V 12pt x Paragraph