Computing Bad Debts and Preparing Journal Entries the trial balance before adjustment of Estefan Inc. shows the following balances. Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of

(a) 4% of gross accounts receivable and

(b) 1% of net sales.

Dr. Cr. Accounts Receivable Allowance for Doubtful Accounts Sales, Net (all on credit) $80,000 1,750 $580,000