Question $4$ of $31$

Sheridan Company uses the percentage of receivables method for recording bad debt expense. The accounts receivable balance is $$594000$ and credit sales are $$2690000.$ Management estimates that $4\%$ of accounts receivable will be uncollectible. What adjusting entry will Sheridan Company make to record bad debt expense if the Allowance for Doubtful Accounts has a $$4900$ credit balance before adjustment?

Bad Debt Expense

Accounts Receivable

Bad Debt Expense

Allowance for Doubtful Accounts

Bad Debt Expense

Allowance for Doubtful Accounts

Bad Debt Expense

Accounts Receivable

$18860$

$18860$

$1860$

$18860$

$23760$

$23760$

$23760$

$23760$