Blue Jay Corporation's accounts receivable balance is $70,000 at year end, and the total credit sales were $600,000. Using an aging schedule, management estimates that $4,000 of receivables will be uncollectible. What adjusting entry will have to be made if the Allowance for Expected Credit Losses has a credit balance of $500 before adjustment? Credit Losses Accounts Receivable Credit Losses Allowance for Expected Credit Losses Credit Losses 3,500 Allowance for Expected Credit Losses Credit Losses Allowance for Expected Credit Losses 3,500 3,500 4,000 4,500 3,500 4,000 4,500

Blue Jay Corporation's accounts receivable balance is $70,000 at year end, and the total credit sales were $600,000. Using an aging schedule, management estimates that $4,000 of receivables will be uncollectible. What adjusting entry will have to be made if the Allowance for Expected Credit Losses has a credit balance of $500 before adjustment