Estimating Uncollectible Accounts Receivable as a Percentage of Total Receivables The company had an Accounts Receivable balance of $85,000 and an Allowance for Bad Debts balance of $3,400 (credit) at the end of the year (before any adjusting entry). Credit sales for the year totaled $860,000. The accountant determined that 10% of the ending accounts receivable will ultimately be uncollectible. Make the journal entry necessary to record bad debt expense for the year.