Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $405,000; Allowance for Doubtful Accounts has a debit balance of $3,500; and sales for the year total $1,820,000. Bad debt expense is estimated at 1/4 of 1% of sales. 1. Determine the amount of the adjusting entry for uncollectible accounts. $ 4,550 2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense 405,000 9,100 X 4,550 3. Determine the net realizable value of accounts receivable. $395,900 X