O Incentive for the buyer to pay more quickly 39) A company's controller estimated bad debt expense using the percentage of accounts receivable method. Total sales for the year were $500,000. The ending balance in accounts receivable was $80,000. An examination of the outstanding accounts at the end of the year indicates that approximately 4% of these accounts will ultimately prove to be uncollectible. Before any adjustment, the balance in the allowance for bad debts is $400 (credit). Total accounts written off as uncollectible during the year were $2,500. Which debit or credit is included in the adjusting entry to record bad debt expense for the year? Debit allowance for bad debts for $2,500 Debit allowance for bad debts for $3,600 Credit allowance for bad debts for $2,800 O Credit allowance for bad debts for $3,200