A trial balance before adjustment included the following:
| Debit |
Credit |
| Accounts receivable |
$133,000 |
Allowance for doubtful accounts
|
1,080 |
Sales
|
$471,000 |
Sales returns and allowances
|
5,200 |
Give journal entries assuming that the estimate of uncollectibles is determined by taking
(1) 4% of gross accounts receivable(Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
(2) 3% of gross accounts receivable and assume a $1,080 debit allowance account balance. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)