Providing for doubtful accounts At the end of the current year, the accounts receivable account has a debit balance of $762,000 and sales for the year total $8,640,000. The allowance account before adjustment has a debit balance of $10,300. Bad debt expense is estimated at 1/4 of 1% of sales. The allowance account before adjustment has a debit balance of $10,300. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $33,000. The allowance account before adjustment has a credit balance of $8,800. Bad debt expense is estimated at 1/2 of 1% of sales. The allowance account before adjustment has a credit balance of $8,800. An aging of the accounts in the customer ledger