The trial balance before adjustment of Sunland Company reports the following balances:

		Dr.		Cr.
Accounts receivable		$255,000
Allowance for doubtful accounts				$2,840
Sales (all on credit)				600,000
Sales returns and allowances		77,000

Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 10% of gross accounts receivable. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of $2,840 instead of a credit balance. Prepare the journal entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit