Paulson Corporation provided the following account analyses for the current year:

Required
a. Prepare the journal entry to record the bad debt provision at year-end assuming that Paulson estimates its uncollectible accounts at 4% of net credit sales.
b. Prepare the journal entry to record the bad debt provision at year- end assuming that Paulson estimates its uncollectible accounts at 5% of its ending accounts receivable balance.

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Accounts Receivable Beginning Balance Sales 3,659,000 29,900,500 368,960 Write-offs 200,384 Sales Returns 10,750,642 Collections Allowance for Uncollectible Accounts 1097750 Beginning Balance Write-offs 368,960