Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $696,000 and net sales for the year total $7,890,000.

a.The allowance account before adjustment has a credit balance of $9,400. Bad debt expense is estimated at 3/4 of 1% of net sales.

b.The allowance account before adjustment has a credit balance of $9,400. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $30,100.

c.The allowance account before adjustment has a debit balance of $9,400. Bad debt expense is estimated at 1/4 of 1% of net sales.

d.The allowance account before adjustment has a debit balance of $9,400. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $78,000.