Can someone explain why the allowance for doubtful accounts is -68,650 for the balance sheet in number 2? I know you take the credit sales and multiply it by 1.5% and subtract out the allowance for doubtful accounts (16580) but since its a debit account wouldn't you add it? I don't get the concept

At December 31, 2015, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $1,905,000 5,682,000 In addition, its unadjusted trial balance includes the following items Accounts receivable Allowance for doubtful accounts $1,270,100 debit 16,580 debit 7 Required: 1. Prepare the adjusting entry for this company to recognize bad debts under each of the following independent assumptions a. Bad debts are estimated to be 1.5% of credit sales b. Bad debts are estimated to be 1% of total sales C. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible Adjusting entries (all dated December 31, 2015) Transaction General Journal Debit Credit Bad debts expense 85,230 Allowance for doubtful accounts 85,230 Bad debts expense 75,870 Allowance for doubtful accounts 75,870 Bad debts expense 80,085 Allowance for doubtful accounts 80,085