Reference no: EM132889249

Question - Munchener Corp.'s unadjusted trial balance includes the following balances: Dr. Cr. Accounts receivable $150,000 Allowance for doubtful accounts $ 3,500 Sales (all on credit) 720,000 Sales returns and allowances 30,000 Required 1. Prepare the entries for estimated bad debts assuming that doubtful accounts are estimated to be (a) 5% of gross accounts receivable and (b) 2% of net sales. 2. Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of $3,500 instead of a credit balance.