Exercise 15.3 (Algo) Estimating and recording uncollectible accounts on the basis of accounts receivable when there is a debit balance in Allowance for Doubtful Accounts. LO 15-1 On December 31, 20X1, before adjusting entries, the balances of selected accounts of the Battlefield Equipment Company were as follows: Accounts Receivable $ 928,000 Allowance for Uncollectible Accounts (debit balance) 2,800 dr. The company has determined that historically about 3.6 percent of accounts receivable are never collected and uses this basis to determine its bad debts provision.