E7-7b (recording bad debts) rodriguez company reports the following

E7-7B (Recording Bad Debts) Rodriguez Company reports the following financial information before adjustments.
ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ Debits ÿ ÿ ÿ ÿ ÿ ÿ Credits
Accounts Receivable ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ$25,000
Allowance for Doubtful Accounts ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ $ 500
Sales (all on credit) ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ 225,000
Sales Returns and Allowances ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ ÿ 12,500
Instructions
Prepare the journal entry to record Bad Debt Expense assuming Rodriguez Company estimates bad debts
at (a) 3% of net sales and (b) 8% of accounts receivable.