Nexto Company uses the Percentage of Accounts Receivable allowance method to estimate its bad debt expense. At the end of the year the company estimates that it has $7,500 of uncollectible accounts. It currently has a credit balance of $2,700 in its allowance for doubtful accounts ete What journal entry should Nexto Company make on December 31 to adjust its allowance account? Cr What effect does this entry have on the accounting equation? Assets Liabilities + Equity ALE o- In January of the following year, a customer who owed $600 went bankrupt and will not have to pay their balance owed. What journal entry should the company make to record this event? Cr What effect does this entry have on the accounting equation? AssetsLiabilities Equity o