Conroe Company, uses the Percentage of Sales Method to calculate their accrual of Bad Debt Expense. Using the data below, calculate the amount of Bad Debt Expense Adjustment needed. Only 3 months needed Activity for 2016 Beginning Credit Balance Sales Accounts Receivable Activity Less: Bad Debt Collections Write-Off debit / (credit) Allowance for Doubtful Accounts Beginning Accrued Bad Debt Ending Balance Expense Write-Off Balance Ending Balance 100,000 150,000 (5,000) January February 125,000 160,000 (75,000) (125,000) (15,000) Using the Percentage of Credit Sales Method, calculate the amount of Accrued Bad Debt Expense for each of the above two months. The company estimates that 4% of the credit sales will be uncollectable Show the journal entries needed to record the above information. january bad debt expense = 5000 february bad debt expense = 6400 16-Jan 5,000 5,000 bad debt expense allowance for doubtful accounts bad debt expense allowance for doubtful accounts 16-Feb 6,400 6,400