A.UNCOLLECTIBLE ACCOUNTS - PERCENTAGE OF SALES METHOD:

During the fiscal year Ebony Company had total sales of $4,350,000 of which cash sales was

$1,725,000 and the balance was credit sales. It estimated that 1.25% of the credit sales will not be

collected.Record the end-of-year adjusting entry in general journal form, to enter the estimate for

bad debt expense.Assuming the following independent conditions existed prior to the adjustment:

1.Allowance for Bad Debts has a credit balance of $800.

1. Allowance for bad debts has a debit balance of 455.
2. what is the description, post ref, debit, and credit.