Example Exercise 9-3 Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $800,000; Allowance for Doubtful Accounts has a credit balance of $7,500; and sales for the year total $3,500,000. Bad debt expense is estimated at 2% of sales. Determine: (a) the amount of the adjusting entry for uncollectible accounts; 1/2% of sales = Adjusting entry = Bad debt expense Allowance for doubtful accounts... (b) the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense, Adjusted balances are balances after posting the adjusting entry: Adjusted balance of Accounts receivable = Adjusted balance of Allowance for doubtful accounts Adjusted balance of Bad debt expense = 16 (c) the net realizable value of accounts receivable. Net Realizable Value of Accts. Receivable = this method is based on the