4. (15 min.)

(a) Bad Debts Expense ............................... 4,760

Allowance for Doubtful Accounts ($5,260 - $500) 4,760

(To adjust the allowance account to total

estimated uncollectible)

(b) Bad Debts Expense ............................... 5,760

Allowance for Doubtful Accounts ($5,260 + $500) 5,760

(To adjust the allowance account to total

estimated uncollectible)