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Wasson Corp had the following items in its unadjusted trial balance at December 31: Debit Credit Sales, cash $88,000 Sales, credit 120,000 Accounts receivable $96,000 1,000 Allowance for doubtful accounts Required Prepare the adjusting entry to estimate bad debts under each of the following independent situations. a. Bad debts are estimated to be 8% of credit sales. b. An analysis shows that 8% of outstanding accounts receivable will not be collected. c. Prepare a current asset section of the lance sheet under the (a) and then (b) assumptions