Cornerstone Exercise 5-26 (Algorithmic) Write-Off of Uncollectible Accounts The Rock has credit sales of $505,000 during 2019 and estimates at the end of 2019 that 2% of these credit sales will eventually default. Also, during 2019 a customer defaults on a $1,700 balance related to goods purchased in 2019. Required: 1. Prepare the journal entry to record the defaulted balance. Allowance for Doubtful Accounts Accounts Receivable Record write-off of defaulted account Feedback Check My Work 1. Under the allowance method bad debt expense is recognized in the period of sale (i.e., matched to the period the revenue is recognized). Bad debt expense is not recognized at the time a specific account is written off as uncollectible. 2. Prepare the adjusting entry to record the bad debt expense for 2019. Bad Debt Expense Allowance for Doubtful Accounts Record adjusting entry for bad debt expense estimate