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Exercise 7-9 The trial balance before adjustment of Novak Inc. shows the following balances.

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Exercise 7-9The trial balance before adjustment of Novak Inc. shows the following balances.Dr.Cr.Accounts Receivable$80,000Allowance for Doubtful Accounts2,780Sales Revenue (all on credit)$703,300Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,691 credit balance. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)No.Account Titles and ExplanationDebitCredit(a)(b)Exercise 7-9The trial balance before adjustment of Novak Inc. shows the following balances.Dr.Cr.Accounts Receivable$80,000Allowance for Doubtful Accounts2,780Sales Revenue (all on credit)$703,300Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,691 credit balance. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)No.Account Titles and ExplanationDebitCredit(a)(b)

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