Problem # 2 (Computing Bad Debts and Preparing Journal Entries) The trial balance before adjustment of Santillan Inc. shows the following balances. Credits Accounts Receivable Allowance for Doubtful Accounts Sales (all on credit) $180,000 3,500 $1,000,000 Instructions mated bad debts assumng that the allowance is to prov on the basis of (a) 5% of gross accounts receivable and (b) 1% of net sales