BACK NET Multiple Choice Question 113 Ayayai Corp. uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $30000 and credit sales are $120000 Management estimates that 5% of accounts receivable will be uncollectible. What adjusting entry will Ayayal Corp, make if the Allowance for Doubtful Accounts has a credit balance of $300 before adjustment? 900 900 1200 1200 Bad Debt Expense Accounts Recevable Bad Debt Expense Allowance for Doubtful Accounts Bad Debt Expense Allowance for Doubtful Accounts Bad Debt Expense Allowance for Doubtful Accounts 1800 1800 600 600