Acct 2003 Chapter 9 Review The direct write-off method often recognizes bad debt expense In the period of original sale After the period of original sale A B The direct write-off method often violates what accounting principle The allowance method recognizes bad debt expense In the period of original sale After the period of original sale A B Net credit sales for the month are $800,000, and bad debts are expected to be 1.5% of net credit sales. If the Allowance for Bad Debts has a credit balance of $15,000 before adjustment, what is the journal entry to record bad debts? A company's Accounts Receivable balance at its December 31 year-end is $100,000, and its Allowance for Bad Debts has a credit balance of $500 before year-end adjustment. Its net credit sales are $500,000. It estimates that 4% of outstanding accounts receivable are uncollectible. What is the journal entry to record bad debts