XYZ Company reports year-end (12/31/XX) credit sales in the amount of $390,000 and accounts receivable of $85,500. XYZ uses the balance sheet method to report bad debt estimation. The estimation percentage is 3.5%. There is a $2,000 DR balance in the Bad Debt Account and a $2,000 CR balance in the Allowance for Doubtful Accounts. a. What is the formal journal entry using the balance sheet method? b. Show this using T-accounts