Uncollectible Accounts-Percentage of Sales Ryan's Express has total credit sales for the year of $179,000 and estimates that 3% of its credit sales will be uncollectible. Record the end-of-perio- adjusting entry on December 31, in general journal form, for the estimated bad debt expense. Assume the following independent conditions existed prior to the adjustment: 1. Allowance for Doubtful Accounts has a credit balance of $925. Page: DATE ACCOUNT TITLE 20-- 1 Bad Debt Expense Dec. 31 2 Allowance for Doubtful Accounts Feedback DOC. POST. NO. REF. DEBIT CREDIT 2 Check My Work The percentage of sales method is based on the relationship between the amount of credit sales and the amount of sales that will be uncollectible. Any balance in Allowance for Doubtful Accounts prior to adjustment is ignored in making the current period's adjusting entry 2. Allowance for Doubtful Accounts has a debit balance of $385. DATE Page: ACCOUNT TITLE DOC. POST. NO. REF. DEBIT CREDIT 2. Allowance for Doubtful Accounts has a debit balance of $385. Page: DATE ACCOUNT TITLE 20-- 1 Bad Debt Expense Dec. 31 2 Allowance for Doubtful Accounts DOC. POST. NO. REF. DEBIT CREDIT 1 2