Current Attempt in Progress

Sunland Corp uses the percentage$-$of$-$receivables basis to record bad debt expense.

Accounts receivable $($ending balance$)$

$$463,000($debit$)$

Allowance for doubtful accounts $($unadjusted$)$

$4,200($debit$)$

The company estimates that $3\%$ of accounts receivable will become uncollectible.

Your answer is partially correct.

Prepare the adjusting journal entry to record bad debt expense for the year. $($List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually.$)$

Account Titles and Explanation

Debit

Credit

Bad Debt Expense

Allowance for Doubtful Accounts