this is for intermediate accounting regarding the time value of money

Exercise ?-9 The trial balance before adjustment of Stellar Inc. shows the following balances. Dr. Cr. Amounts Receivable $96,700 Allowance for Doubtful Accounts 3,050 Sales Revenue {all on credit) $123,000 Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 5% of gross accounts receivable and (b) 6% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,654 credit balance. (If no entryr is required, seiect "No Entry" for the account tities and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manuaiiy.) Mo. Monmt Tlls and Explanation Debit Credi: '31 I II II I I II II l (\"I