Help Save & Exit MC Qu. 107 A company has... A company has $99,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 5% of outstanding recer ables are uncolectitle. The current balance before a stments) in the allowance for do be ur accounts as an $890 debit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for 3 6