QS 8-7Adjusting entry to estimate bad debts-percentage of receivables LO2,3 Foster Company uses the allowance method to account for uncollectible accounts receivable. At year- end, December 31, the unadjusted balance in the Allowance for Doubtful Accounts was $450 credit. Based on past experience, it was estimated that 2.5% of the Accounts Receivable balance of $640,000 was uncollectible. Record the adjusting entry to estimate bad debts at December 31.