The trial balance before adjustment of Marigold Inc. shows the following balances.
Dr. |
Cr. |
Accounts Receivable |
$96,700 |
Allowance for Doubtful Accounts |
3,050 |
Sales Revenue (all on credit) |
$723,000 |
Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 5% of gross accounts receivable and (b) 6% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,654 credit balance.