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Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $703,000 and sales for the year total $7,970,000. 1. The allowance account before adjustment has a debit balance of $9,500. Bad debt expense is estimated at 1/4 of 1% of sales. b. The allowance account before adjustment has a debit balance of $9,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $30,400 The allowance account before adjustment has a credit balance of $4,500. Bad debt expense is estimated at 3/4 of 1% of sales. d. The allowance account before adjustment has a credit balance of $4,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $37,400. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. b. X C d X