Accounting for Doubtful Accounts Randall Company estimates its bad debts expense by aging its accounts receivable and applying percentages to various age groups of the accounts. Randall calculated a total of $3,000 in possible credit losses as of December 31. Accounts Receivable has a balance of $128,000, and the Allowance for Doubtful Accounts has a credit balance of $500 before adjustment at December 31 What is the December 31 adjusting entry to provide for credit losses? General Journal Description Credit Debit Bad debts expense 2,500 0 Allowance for doubtful 0 2,500 What is the net amount of accounts receivable that should be included in current assets? C