Providing for Doubtful Accounts At the end of the current year, the accounts recelvable account has a balance of $718,000 and sales for the year total $8,140,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following independent assumptions: The allowance account before adjustment has a negative balance of $(9,700). Bad debt expense is estimated at 1/4 of 1% of sales. The allowance account before adjustment has a negative balance of $(9,700). An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $31,000 The allowance account before adjustment has a positive balance of $6,200. Bad debt expense is estimated at 3/4 of 1% of sales. The allowance account before adjustment has a positive balance of $6,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $51,500. x