Cotton, Corp. uses the allowance method to account for uncollectible accounts. On May 31, 2013, Allowance for Doubtful Accounts has a $1,300 credit balance. Journalize the year-end adjusting entry for Doubtful Accounts assuming the following independent scenarios:
1. Cotton, Corp., estimates Doubtful Accounts as % of 1% of net credit sales. Net credit sales for the year equal $750,000.
2. Based on an aging of Accounts Receivable, Cotton, Corp., estimates that Doubtful Accounts will equal $3,120.