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Ayayai Company has a credit balance of $3,090 in Allowance for Doubtful Accounts before adjustment. The total estimated uncollectibles under the percentage-of-receivables basis is $6,020.

Ayayai Company has a credit balance of $3,090 in Allowance for Doubtful Accounts before adjustment. The total estimated uncollectibles under the percentage-of-receivables basis is $6,020.

Prepare the adjusting entry to record bad debt expense.(Credit account titles are automatically indented when the amount is entered.Do not indent manually.)

Account Titles and Explanation

Debit

Credit

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