Cash sales

Credit sales

$$900,000$

$300,000$

Its year$-$end unadjusted trial balance includes the following items.

Accounts receivable

Allowance for doubtful accounts

$$125,000$ debit

$5,000$ debit

Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be $(1)3\%$ of credit sales, $(2)1\%$ of total sales and $(3)6\%$ of year$-$end accounts receivable.

Journal entry worksheet

$1$

$2$

$3$

Record Bad Debts Expense assuming uncollectibles are estimated to be $3\%$ of credit sales.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$December $31,,,],[,,,]]$