Larkspur Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $110000 and credit sales are $1110000. Management estimates that 3% of accounts receivable will be uncollectible. What adjusting entry will Larkspur Company make if the Allowance for Doubtful Accounts has a credit balance of $1100 before adjustment? Bad Debt Expense Accounts Receivable Bad Debt Expense Accounts Receivable Bad Debt Expense Allowance for Doubtful Accounts Bad Debt Expense Allowance for Doubtful Accounts 2200 3300 2200 3300 2200 3300 2200 3300

Larkspur Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $110000 and credit sales are $1110000. Managernent estimates that 3% of accounts receivable will be uncollectible. What adjusting entry will Larkspur Company make if the Allowance for Doubtful Accounts has a credit balance of $1100 before adjustment