Surprise Lake Tours uses the % of Credit Sales method to calculate their allowance and the rate they use is 4%. The general ledger has the following balances at the end of their business year.

Accounts Receivable 45,300

Allowance for Doubtful Accounts 250

Credit Sales Revenue 175,000

Bad Debt Expense 0

After you enter the Journal to reflect the year-end adjustment the General Ledger account balances will be:

Accounts Receivable

Allowance for Doubtful Accounts

Credit Sales Revenue

Bad Debt Expense