Exercise 7-10 Estimating bad debts LO P3 At December 31, Folgeys Coffee Company reports the following results for its calendar year Cash sales Credit sales $ 903.000 303,000 Its year-end unadjusted trial balance includes the followin Items Accounts receivable Allowance for doubtful accounts $12. debit 5,300 debit Prepare the adjusting entry to record bad debts expense assuming total sales and (9% of year-end accounts receivable. are estimated to be (a) 6% of credit sales. (b) 4% of View transactions