A company uses the allowance method and expects to not collect $15,000 of sales. The journal entry to record the estimated bad debt is __________.

Question 1 options:

Allowance for Doubtful Accounts	$15,000
Bad Debt Expense	$15,000

Allowance for Doubtful Accounts	$15,000
Accounts Receivable	$15,000

Accounts Receivable	$15,000
Allowance for Doubtful Accounts	$15,000

Bad Debt Expense	$15,000
Allowance for Doubtful Accounts	$15,000

After aging the receivables, Tims Toys estimates that $900 will not be collected, and the Allowance account has a debit balance of $325. The adjusting entry would be for __________.

Question 2 options:

	$575
	$900
	$1,225
	$325