20. A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: debit debit Accounts receivable Allowance for uncollectible accounts Net Sales 375,000 500 credit 800,000 All sales are made on credit. Based on past experience, the company estimates that 0.6 % of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared? A) $1,275 B $1,775 C) $4,500 D) $4,800 E) $5,500 A company has $90,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 4 % of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is an $800 credit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for: A) $2,800 B) $3,568 C) $3,632 D) $3,600 E) $4,400