10 Exercise 7-10 Estimating bad debts LO P3 At December 31, Folgeys Coffee Company reports the following results for its calendar year 116 points Credit sales 300, 000 Its year-end unadjusted trial balance includes the following items Hint $ 125, 000 debit 5, 000 debit 1% of Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (a) 3% of credit sales, total sales and (c) 6% of year-end accounts receivable. Journal entry worksheet tobe3% of credit sales