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The ledger of Queens Company at the end of the current year shows Accounts Receivable...

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Accounting

The ledger of Queens Company at the end of the current year shows Accounts Receivable $100,000, Sales Revenue $820,000, and Sales Returns and Allowances $20,000.
a) If Allowance for Doubtful Accounts has a credit balance of $3,000 in the trial balance, journalize the adjusting entry on December 31, assuming bad debts are expected to be (1)1% of net sales, and (2)10% of accounts receivable.
b) If Allowance for Doubtful Accounts has a debit balance of $1,000 in the trial balance, journalize the adjusting entry on December 31, assuming bad debts are expected to be (1)1.25% of net sales and (2)5% of accounts receivable.
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