Duck Ponds, Inc. uses the allowance method to determine their bad debt expense. The allowance for bad debts is based upon the balance in accounts receivable. Based upon past experience A. Duck Ponds, Inc. uses the rate of 0.75% (.0075) of accounts receivable to determine the appropriate balance in the Allowance for Doubtful accounts. Calculate the amount of the adjusting journal entry and record the journal entry associated with this transaction.

Duck Ponds, Inc. uses the allowance method to determine their bad debt expense. The allowance for bad debts is based upon the balance in accounts receivable. Based upon past experience A. Duck Ponds, Inc. uses the rate of 0.75% (.0075) of accounts receivable to determine the appropriate balance in the Allowance for Doubtful accounts. Calculate the amount of the adjusting journal entry and record the journal entry associated with this transaction.| Duck Ponds, Inc. Trial Balance December 31, 20XX Account Title Debit Credit Cash Accounts receivable Allowance for doubtful accounts Prepaid rent Supplies Investments Furniture Accumulated depreciation furniture Equipment Accumulated depreciation- equipment Building Accumulated depreciation- buildin Accounts payable Salary payable Unearned revenue, customer deposits Bonds payable Premium of bonds payable Common stock Retained earnings Dividends Revenue Salary expense Rent expense Utilities expense Depreciation expense-furniture Depreciation expense-equipment Depreciation expense-buildin Advertising expense Supplies expense Bad debts expense Interest expense $19,300 47,630 250 1,680 6,800 113,520 15,350 12,800 44,600 1,830 89,900 28,600 6.240 19,750 150,000 6.000 20,000 54,920 5,250 128,800 51,600 5,000 10,410 0 0 5,650 12,000 0 0 428,940 Total 428,940