Sage Hill Company has been in business several years. At the end of the current year, the unadjusted balances show:

Accounts Receivable

$$341,000$

Sales Revenue

$2,420,000$

Allowance for Doubtful Accounts

$6,270$

Bad debts are estimated to be $7\%$ of receivables. Record adjustment to Allowance for Doubtful Accounts in a tabular summary and

choose the appropriate account for the revenue or expense account.

Decreases in assets, liabilities, or stockholders' equity require a negative sign or parentheses.

Increases in expenses require a negative sign or parentheses.

Increases to Allowance for Doubtful Accounts require a negative sign or parentheses.

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