Dau debts--percent of sales Date Account Credit Debit PR djusting entry to estimate bad debts-percent of receivables Foster Company uses the allowance method to account for uncollectible accounts receivable. At year-end, December 31, the unadjusted balance in the Allowance for Doubtful Accounts was $500 credit. Based on past experience, it was estimated that 2.5% of the Accounts Receivable balance of $640,000 was uncollectible. Record the adjusting entry to estimate bad debts at December 31 Date Account PR Debit Credit Lexton Company calculates Bad Debt expense using the Sales Method. At year-end, October 31, it was estimated that 0.5% of net credit sales were uncollectible based on past experience Total Sales were $1.000.000, of which 80% were on credit. Record the entry at year-end to estimate uncollectible receivables