Your answer is partially correct An inexperienced accountant made the following entries. In each case, the explanation to the entry is correct Assume that at 12/31 the correct balance of the Allowance account before adjustment is so Dec. 17 4.100 100 4.200 1.200 27 1200 Cash Sales Discounts Accounts Receivable (To record collection of 12/4 sales, terms 2/10, n/30) Cash Bad Debt Expense (Collection of account previously written off as uncollectible under allowance method) Bad Debt Expense Allowance for Doubtful Accounts (To recognize estimated bad debts based on 5% of accounts receivable of $650,000) 2.000 2000 31 the correcting entries. (Credit account titles are automatically indented when the amount is entered. Do not indent usented in the problem) Ne propicm Date Account Titles and Explanation Debit Credit Dec. 17 Interest Revenue 6970 6970 Dec. 17 215 Interest Receivable Accounts Receivable Sales Discounts (To reverse write off of collected acepunt) Bad Debt Expense 1100 Dec. 27 23100 23100 Allowance for Doubtful Accounts (To record collection) Bad Debt Expense Dec. 31 Allowance for Doubtful Accounts Touthook and Media