A Company Had the Following Items and Amounts in Its

A company had the following items and amounts in its unadjusted trial balance as of December 31 of the current year:
$$\begin{array} { | l | r | r | } \hline & \text { Debit } &{ \text { Credit } } \\\hline \text { Cash sales } & & \$ 88,000 \\\hline \text { Credit sales } & &2 7 5 , 0 0 0 \\\hline \text { Accounts receivable } & \$ 96,000 & \\\hline \text { Allowance for doubtful accounts } & & 1,000 \\\hline\end{array}$$
Prepare the adjusting entry to estimate bad debts under each of the following separate situations.
1.Bad debts are estimated to be 2.5% of credit sales.
2.An aging analysis estimates that 8% of the outstanding accounts receivable will be uncollectible.