Exercise 7-9 Estimating bad debts LO P2 At December 31, Folgeys Coffee Company reports the following results for its calendar year Cash sales Credit sales $ 910,000 310,000 Its year-end unadjusted trial balance includes the following items Accounts receivable Allowance for doubtful accounts $135,000 debit 6,000 debit Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (a) 5% of credit sales, (b) 3% of total sales and (c) 8% of year-end accounts receivable View transaction list Journal entry worksheet 2 Record Bad Debts Expense assuming uncollectibles are estimated to be 5% of credit sales Note: Enter debits before credits Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal 1 Record Bad Debts Expense assuming uncollectibles are estimated to be 5% of credit sales. 2 Record Bad Debts Expense assuming uncollectibles are estimated to be 3% of total sales. 3 Record Bad Debts Expense assuming uncollectibles are estimated to be 8% of year-end accounts receivable