Question: Quick, Easy Trial Balance Problem! please The trial balance before adjustment of FDU Company reports the following balances: Instructions (a) Prepare the entry for estimated

Quick, Easy Trial Balance Problem! please

The trial balance before adjustment of FDU Company reports the following balances: Instructions (a) Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 7% of gross accounts receivable. (b) Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of $5,000 instead of a credit balance. How will this difference affect the journal entry in part (a)? (c) What is the justification for the percentage-of-receivables method used to estimate bad debts

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