d. a decrease in assets and a decrease in stockholders' equity (expense) 19. Allowance for Doubtful Accounts has a debit balance of $2,500 at the end of the year before adjustment), and bad debt expense is estimated at 4% of credit sales. If net credit sales are $800,000, the amount of the adjusting entry to record the estimate of the uncollectible accounts is a. $29,500 b. $34,500 c. $32,000 d. cannot be determined