Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $888,000 and sales for the year total $10,070,000. a. The allowance account before adjustment has a credit balance of $12,000. Bad debt expense is estimated at 3/4 of 1% of sales. b. The allowance account before adjustment has a credit balance of $12,000. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $38,400. C. The allowance account before adjustment has a debit balance of $7,200. Bad debt expense is estimated at 1/4 of 1% of sales. d. The allowance account before adjustment has a debit balance of $7,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $59,800. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. a. $ 75,525 b. $ 26,400 C. $ 50,350 d. $ 67,000