Justin had a beginning balance in Accounts Receivable of $50,000 and a beginning balance in the Allowance for Doubtful Accounts of $2,500. Justin had written off $1,500 of accounts receivable during the year. During the year he sold $376,500 of goods on credit and collected $300,000. If Justin estimates that 5% of his ending accounts receivable will eventually not be collected, his adjusting journal entry to record bad debt expense will be:

he sold $376,500 of goods on credit and collected $300,000. If Justin estimates that 5% of his ending accounts receivable will eventually not be collected, his adjusting journal entry to record bad debt expense will be:

		Bad Debt Expense 6,175 Allowance for Doubtful Accounts 6,175
		Bad Debt Expense 5,250 Allowance for Doubtful Accounts 5,250
		Some other entry
		Bad Debt Expense 6,250 Allowance for Doubtful Accounts 6,250
		Bad Debt Expense 5,175 Allowance for Doubtful Accounts 5,175