Wasson Corp had the following items in its unadjusted trial balance at December 31: 
Prepare the adjusting entry to estimate bad debts under each of the following independent situations.(Show all work.)
(1)Bad debts are estimated to be 8% of credit sales.
(2)An analysis shows that 8% of outstanding accounts receivable will not be collected.
Definitions:
Postpurchase Evaluation
The process by which consumers assess their satisfaction with a product after they have bought and used it.
Derived Demand
The demand for a product or service that results from the demand for another product or service it is used to produce.
Vendor Rating System
A method used by companies to evaluate and rate the performance of their suppliers.
Postpurchase Evaluation
The assessment conducted by consumers after buying and using a product to determine if it meets their expectations and needs.
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