The trial balance before adjustment of Rose Company reports the following balances: Accounts receivable Allowance for doubtful accounts Sales (all on credit) Sales returns and allowances Dr. $100,000 Cr. $ 2,500 750,000 40,000 Instructions 9. Assuming that doubtful accounts are estimated to be (1) 6% of gross accounts receivable and (2) 1% of net sales. a) Calculate bad debt expense, and b) calculate allowance for doubtful accounts: 10. 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. a) Calculate bad debt expense, and b) calculate allowance for doubtful accounts: