Exercise 9-10 Estimating bad debts LO P3 At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales Credit sales $ 913,000 313,000 Its year-end unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $138.000 debit 6,300 debit Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (a) 4% of credit sales, (b) 2% of total sales and (c) 7% of year-end accounts receivable. View transaction list View journal entry worksheet No Transaction Credit General Journal Bad debts expense Allowance for doubtful accounts Debit 12,520 12,520 2b. 24,520 Bad debts expense Allowance for doubtful accounts 24,520 Bad debts expense Allowance for doubtful accounts