Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $858,000 and sales for the year total $9,730,000. a. The allowance account before adjustment has a debit balance of $11,600. Bad debt expense is estimated at 1/4 of 1% of sales. b. The allowance account before adjustment has a debit balance of $11,600. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $37,100. c. The allowance account before adjustment has a credit balance of $7,200. Bad debt expense is estimated at 1/2 of 1% of sales. d. The allowance account before adjustment has a credit balance of $7,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $59,800