Exercise 2: Journal Entries the Allowance Method for Estimating Uncollectible Accounts Receivable : a. Percentage of Sales Approach: At 9/30 Year 7 ECU Corporation records the estimated amount of UNCOLLECTIBLE ACCOUNT EXPENSE for 3% of the ECU's $500,000 of credit sales / and updates ALLOWANCE FOR DOUBTFUL ACCOUNTS, a contra- ASSET account. Phrase Account Category Affect Dr. or Cr. 1 st: AL SE R E contra + Dr Cr 2nd: AL SE RE contra + Dr Cr Date Accounts Debit Credit