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Current Attempt in Progress Sheridan Company uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $250000 and credit sales are

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Current Attempt in Progress Sheridan Company uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $250000 and credit sales are $1000000. Management estimates that 5% of accounts receivable will be uncollectible. What adjusting entry will Sheridan Company make if the Allowance for Doubtful Accounts has a credit balance of $2500 before adjustment

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