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Bayfiew Corp uses the percentage$-$of$-$receivables basis to record bad debt expense.

Accounts receivable $($ending balance$)$

$$550,000($debit$)$

Allowance for doubtful accounts $($unadjusted$)$

$4,200(debit)$

The company estimates that $3\%$ of accounts receivable will become uncollectible.

$($a$)$

Your answer is partially correct.

Prepare the adjusting journal entry to record bad debt expense for the year. $($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit