% of Credit Sales Method Jax, Inc. showed the following account balances on December 31, 2019 and recognizes bad debt at 3% of credit sales. Required: 1 Calculate, record, post, and analyze the adjustment to recognize bad debt under the following assumption: DR CR 555,000 Account Accounts receivable Allowance for doubtful accounts Net credit sales 12,000 685,000 General Ledger Accounts Receivable A Debit Credit Allowance for Doubtful XA Debit Credit Bad Debt Expense E Debit Credit Transaction Analysis ASSETS = LIABILITIES + EQUITY REVENUES - EXPENSES = NET INCOME General Journal 2 What is the net realizable value of Accounts receivable