prepare adjusting entries to record bad debt expense

a At December 31 of the current year, a company reported the following: Total credit sales for the current year: $1,200,000 Accounts receivable balance at December 31 of the current year: $360,000. Balance of Allowance for Doubtful Accounts credit balance at December 31: $10,400. Prepare the necessary adjusting entry to record bad debt expense assuming this company's bad debts are estimated to equal 5% of accounts receivable. IA. BI U - 1 I 2 = = Date Account & Explanation Debit Credit