View Policies Current Attempt in Progress The trial balance before adjustment of Sheffield Company reports the following balances: Cr. Dr. $130,000 Accounts receivable Allowance for doubtful accounts Sales (all on credit) Sales returns and allowances $1,620 900.000 79,000 (a) Your answer has been saved. See score details after the due date. Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 8% of gross accounts receivable. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Bad Debt Expense 8780 Allowance for Doubtful Accounts 8780 Attempts: 1 of 1 used (b) Assume that all the information above is the same except that the Allowance for Doubtful Accounts has a debit balance of $1,620 instead of a credit balance. Prepare the journal entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Credit Debit Save for Later Attempts: 0 of 1 used Submit