This is the entire question that has been given to me. The accounts receivable on december 31st for question 2 says it is $900,000

Percentage of Credit Sales Example Problem (INCOME STATEMENT APPROACH) Based on past experience, ABC Company estimates bad debt expense at 5% of credit sales. Credit sales for 2016 were $900,000. Estimate the amount of the necessary adjusting entry at December 31, 2016 for each of the scenarios, assuming a balance in the "Allowance for Doubtful Accounts" account prior to the year-ending adjusting entry is Balance in "Allowance for Doubtful Accounts" before Adiustment a. $0 $10,000 Credit $10,000 Debit Date Account Description Debit Credit Bad Debt Expense Allowance for Doubtful Accounts Bad Debt Expense Allowance for Doubtful Accounts Bad Debt Expense Allowance for Doubtful Accounts %of Ending Accounts Receivable Example Problem-(BALANCE SHEET APPROACH) Based on past experience, ABC Company estimates bad debt expense at 6% of ending accounts receivable. Accounts receivable on December 31, 2016, was $900,000. Estimate the amount of the necessary adjusting entry at December 31, 2016 assuming a balance in the "Allowance for Doubtful Accounts" account prior to the year-ending adjusting entry is as follows Balance in "Allowance for Doubtful Accounts" before Adiustment $0 $10,000 Credit $10,000 Debit Date Account Descri Debit Credit Bad Debt Expense Allowance for Doubtful Accounts Bad Debt Expense Allowance for Doubtful Accounts Bad Debt Expense Allowance for Doubtful Accounts