Answer
Adjusting Journal Entry:
(a) Bad debts 6,500 dollars
Allowance for doubtful accounts 6,500 dollars
(b) Bad debts 8,600 dollars
Allowance for doubtful accounts 8,600 dollars
Work Step by Step
(a) To adjust allowance account to total estimated uncollectable
(b) To adjust allowance account to total estimated uncollectable,
and the debit of 600 dollars in allowance account