Assuming that in exercise E12-2B the balance sheet approach is used, prepare the adjusting entry for bad debt expense. Aging of accounts receivable indicates that a $12,800 balance in the Allowance for Doubtful Accounts account will be needed to cover bad debts.

Data from in exercise E12-2B.

Given the following amounts in these accounts below, journalize the adjusting entry for bad debts expense on December 21, 2021. Bad Debt Expense is estimated to be 5% of net sales. The income statement approach is used.

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Accounts Receivable Sales Sales Returns and Allowances Sales Discounts Allowance for Doubtful Accounts Dr. $45,000 1,000 10,500 Cr. $121,500 6,000