Help Save & Exit Su TB MC Qu. 07-108 A company has... A company has $95.000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 4% of outstanding receivables are uncollectible. The current balance before adjustments) in the allowance for doubtful accounts is an $850 credit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for Multiple Choice