View Policies Current Attempt in Progress The trial balance before adjustment of Sheridan Company reports the following balances: Dr. Cr. $108,000 $2.340 Accounts receivable Allowance for doubtful accounts Sales (all on credit) Seles returns and allowances 800,000 49,000 (a) Your answer has been saved. See score details after the due datel Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 7% 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 5220 Allowance for Doubtful Accounts 5220 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 $2,340 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 Debit Credit Save for Later Attempts: 0 of 1 used Submit