Sage Hill Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $140000 and credit sales are $1410000. Management estimates that 3% of accounts receivable will be uncollectible. What adjusting entry will Sage Hill Company make if the Allowance for Doubtful Accounts has a credit balance of $1400 before adjustment? Sage Hill Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $140000 and credit sales are $1410000. Management estimates that 3% of accounts receivable will be uncollectible. What adjusting entry will Sage Hill Company make if the Allowance for Doubtful Accounts has a credit balance of $1400 before adjustment