Problem #2 - Bad Debt Reporting (20 Points) The trial balance before adjustment of Risen Company reports the following balances: Dr. Cr. Accounts receivable $600,000 Allowance for doubtful accounts $ 10,000 Sales (all on credit) 750,000 Requirements: (a) Prepare the journal entry for estimated bad debts assuming that doubtful accounts are estimated to be 4% of gross accounts receivable. Ending Balance of Allowance (Indicate debit or credit and amount) (b) Prepare the journal entry for estimated bad debts assuming that doubtful accounts are estimated to be 7% of net sales. Ending Balance of Allowance (Indicate debit or credit and amount)