The trial balance before adjustment of Don Quixote, Inc shows the following balances: Accounts Receivable has a debit balance of $90,000, Allowance for Doubtful Accounts has a debit balance of $1750, Sales (all on credit) has a credit balance of $680,000 and Sales Returns & Allowances has a debit balance of $30,000.
Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 8% of gross A/R and (b) 1.5% of net sales.
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