Uncollectible Accounts-Percentage of Sales Alvin's Transport has total credit sales for the year of $170,000 and estimates that 3% of its credit sales will be uncollectible. Record the end-of-period 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: 1 2 1 DATE 2 20-- Dec. 31 DATE ACCOUNT TITLE 20-- Dec. 31 Bad Debt Expense Allowance for Doubtful Accounts 2. Allowance for Doubtful Accounts has a debit balance of $385. Page: ACCOUNT TITLE Bad Debt Expense DOC. POST. NO. REF. Allowance for Doubtful Accounts DEBIT DOC. POST. NO. REF. 4,175 X DEBIT CREDIT 5,485 X ✓ 1 4,175 X 2 CREDIT ✓ 1 5,485 X 2
