Patterson Co. had a debit balance of $1,000 in its Allowance for Doubtful Accounts account on December

Question:

Patterson Co. had a debit balance of $1,000 in its Allowance for Doubtful Accounts account on December 31, 2015. Their net sales for the year totaled $700,000. If they estimate their Bad Debt for the year to be 3% of Net Sales, their yearend adjusting entry for Bad Debts would be: