Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $932,000 and sales for the year total $10,570,000. a. The allowance account before adjustment has a debit balance of $12,600. Bad debt expense is estimated at 1/2 of 1% of sales. b. The allowance account before adjustment has a debit balance of $12,600. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $40,300. c. The allowance account before adjustment has a credit balance of $5,300. Bad debt expense is estimated at 3/4 of 1% of sales. d. The allowance account before adjustment has a credit balance of $5,300. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $44,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. a. $ X b. $ 52,900 $ c. d. $ X Feedback Check My Work An estimate based on a percent of sales determines the amount of the adjusting entry based on the amount estimated for Bad Debt Expense. The amount estimated for Bad Debt Expense is based on a percent of sales. An estimate based on an analysis (an aging) of accounts receivable focuses on the Allowance for Doubtful Accounts. The amount of the adjusting entry is the amount that will yield an adjusted balance in the Allowance for Doubtful Accounts equal to that estimated by the aging schedule