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Sheridan Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable will become uncollectible. Accounts receivable are $419,000

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Sheridan Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable will become uncollectible. Accounts receivable are $419,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,968. (a) (b) Prepare the adjusting journal entry to record bad debt expense for the year. If the allowance for doubtful accounts had a debit balance of $825 instead of a credit balance of $2,968, prepare the adjusting journal entry for bad debt expense

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