Table 5 On December 31, Grubbs Company has the following account balances Accounts receivable $330,000 Allowance for doubtful accounts 7,500 debit Net credit sales 1,500,000 Assuming Grubbs estimates 2.5% of its net credit sales will be result in uncollectible accounts, under the percentage of sales method (income statement method), bad debt expense for the period would be: $37.500 $30,000 $15.750 $45.000