#24

Teal Mountain Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $300000 and credit sales are $3010000. Management estimates that 4% of accounts receivable will be uncollectible. What adjusting entry will Teal Mountain Company make if the Allowance for Doubtful Accounts has a credit balance of $3000 before adjustment? Bad Debt Expense 12000 Accounts Receivable 12000