2. The trial balance before adjustment of Agape Company reports the following balances: Accounts receivable...
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2. The trial balance before adjustment of Agape Company reports the following balances: Accounts receivable Allowance for doubtful accounts Sales (all on credit) Sales returns and allowances $1,000,000 $ 3,000 2,080,000 80,000 Instructions (a) Prepare journal entries for estimated bad debts assuming that doubtful accounts (b) Assume that all the information above is the same, except that the Allowance for are estimated to be (i) 2% of gross accounts receivable and (ii) 1% of net sales. Doubtful Accounts has a debit balance of $1,500 instead of a credit balance. How will this difference affect the journal entries in part (a)
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