Computing Bad Debts Under the Allowance Method Based on Receivables the expected credit losses are estimated to be 9% of accounts receivable a. What is (1) bad debt expense for the year and (2) the ending balance in the allowance for doubtful accounts? 1. Bad debt expense 2. Allowance for doubtful accounts b. How would the answer to part a change (if at all) if the company had a debit balance of $840 in its allowance for doubtful accounts before any adjustment