Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $681,000 and sales for the year total $7,720,000. a. The allowance account before adjustment has a credit balance of $9,200. Bad debt expense is estimated at 1/2 of 1% of sales. b. The allowance account before adjustment has a credit balance of $9,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $29,400. c. The allowance account before adjustment has a debit balance of $7,600. Bad debt expense is estimated at 3/4 of 1% of sales. d. The allowance account before adjustment has a debit balance of $7,600. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $63,100. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. b. $ d. $ Effect of Doubtful Accounts on Net Income During its first year of operations, Mack's Plumbing Supply Co. had sales of $320,000, wrote off $5,100 of accounts as uncollectible using the direct write-off method, and reported net income of $35,200. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1 3/4% of sales would be uncollectible