the allowance account before adjustment has a debit balance of $12,300. bad debt expense is estimated at 1/4 of 1% of sales. the allowance account before adjustment has a debit balance of $12,300. an aging of the accounts in the customer ledger indicates estimated doubtful accounts of $39,400. the allowance account before adjustment has a credit balance of $5,500. bad debt expense is estimated at 3/4 of 1% of sales. the allowance account before adjustment has a credit balance of $5,500. an aging of the accounts in the customer ledger indicates estimated doubtful accounts of $45,700.
