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

	Dr	Cr
accounts receivable	$350,000
allowance for doubtful accounts		$500
sales (all on credit)		$2,180,000
sales returns and allowance	$150,000
sales discount	$30,000

INSTRUCTIONS: prepare the journal entries for bad debt expense assuming the uncollectible amount be

a) 1% of gross account receivable and

b) 0.2% of net sales