Problem 4: Allowance ( 20 points) Rexbilt Company uses the allowance method of handling credit losses. It estimates losses at 4% of credit sales, which were $500,000 this year. At December 31 of his year, the Accounts Receivable balance is $90,000, and the Allowance for Doubtful Accounts has a 5900 credit balance before adjustment. Required: a. (5 pts)Provide the adjusting entry to record bad debs expense for this year in the space below. b. (5 pts)Prepare the A/R section of 12/31 's Balance Sheet. You will be graded on content and format. c. (5 pts) Assume that Rexbilt Company uses aged accounts receivable as a basis of estimating credit losses, instead of a percent of credit sales. If the firm estimates that $7,600 of the accounts will prove inare the adjusting entry. (5 pts) Rexbilt's client, Leslie Lien, was sent to jail for 20 years. Rexbilt decided to write-off her account, which has a balance of $450. Prepare the journal entry to write off her account