analysis of all money claims against other entities, including people , business firms, and other organizations. Receivable method. At the end of the current year, A claim against the customer created by selling merchandise or services on credit. Accounts Receivable has a balance $885,000: The contra asset account for accounts receivable. Allowance for doubtful accounts has a credit balance of $8,000, and sales for the year total $3,980,000. Using the aging method, the balance of allowance for doubtful accounts is estimated as $36,800