Question Percent of accounts receivable method At each calendar year-end, Futaim Electric Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2018, it has outstanding accounts receivable of AED210,000, and it estimates that 3.5% will be uncollectible. Required: Prepare the adjusting entry to record bad debts expense for year 2018 under the assumption that the Allowance for Doubtful Accounts has (a) a AED2,200 credit balance before the adjustment and (b) a AED1,400 debit balance before the adjustment