Topi Corporation uses the allowance method to estimate its bad debt expense. The company has accounts with the following balances at year end: If the company uses the percent of sales method to account for its bad debt expense and estimates bad debt expense to be 1% of total sales, what journal entry should the company make? What effect does this entry have on the accounting equation? Assets = Liabilities + Equity = If the company uses the percent of accounts receivable method to account for its bad debt expense and estimates bad debt expense to be 5% of accounts receivable, what journal entry should the company make? What effect does this entry have on the accounting equation? Assets = Liabilities + Equity If the company uses the aging of accounts receivable method to account for its bad debt expense and the aging schedule estimates that $7000 of accounts receivable will be uncollectible, what journal entry should the company make? What effect does this entry have on the accounting equation? Assets = Liabilities + Equity