The trial balance before adjustment of Estefan Inc. shows the following balances. Dr. Cr.
Accounts Receivable Dr. $80,000
Allowance for Doubtful Accounts Dr. 1,750
Sales, Net Revenue (all on credit) Cr. $580,000
Give 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) 1% of net sales.