Chapter 5: Sales and Receivables (1) Percentage of Credit Sales Method: During 2019, DeLuca Company had net sales of $5,700,000. Most of the sales were on credit. DeLuca expects that 1.5% of net sales will not be collected. A customer defaulted on a $670 balance related to goods purchased in 2018. Prior to the write- off and the adjusting entry, DeLuca's accounts receivable and allowance for doubtful Accounts were $700,000 and $24,000, respectively. A. Estimate the bad debt expense for 2019. B. Prepare the adjusting entry to record the bad debt expense for 2019. C. Prepare the journal entry to record the write-off of the defaulted $670. D. What is the net accounts receivable at the end of the year?