Else Company has been in business several years. At the end of the current year, the ledger

Question:

Else Company has been in business several years. At the end of the current year, the ledger shows:

Accounts Receivable ...... $ 310,000 Dr
Sales Revenue ............. 2,200,000 Cr
Allowance for Doubtful Accounts ... 5,700 Cr

Bad debts are estimated to be 7% of receivables. Prepare the entry to adjust the Allowance for Doubtful Accounts.