Exercise $9-17($Algo$)$ Estimating bad debts LO P$3$

At December $31,$ Folgeys Coffee Company reports the following results for its calendar year.

Cash sales $$904,000$

Credit sales $304,000$

Its year$-$end unadjusted trial balance includes the following items.

Accounts receivable

Allowance for doubtful accounts

$$129,000$ debit

$5,400$ debit

Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be $(1)3\%$ of credit sales, $(2)1\%$ of

total sales and $(3)6\%$ of year$-$end accounts receivable.

Journal entry worksheet

Record Bad Debts Expense assuming uncollectibles are estimated to be $3\%$ of

credit sales.

Note: Enter debits before credits.