The unadjusted trial balance at year-end for a company that uses the percent of receivables method to determine its bad debts expense reports the following selected amounts:

Accounts receivable	$	453,000	Debit
Allowance for Doubtful Accounts		1,430	Credit
Net Sales		2,280,000	Credit

All sales are made on credit. Based on past experience, the company estimates 2.0% of ending account receivable to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

Multiple Choice

• Debit Bad Debts Expense $4,560; credit Allowance for Doubtful Accounts $4,560.

• Debit Bad Debts Expense $10,490; credit Allowance for Doubtful Accounts $10,490.

• Debit Bad Debts Expense $9,060; credit Allowance for Doubtful Accounts $9,060.

• Debit Bad Debts Expense $14,560; credit Allowance for Doubtful Accounts $14,560.

• Debit Bad Debts Expense $7,630; credit Allowance for Doubtful Accounts $7,630