Question: IBT CO uses the allowance method for bad debts.IBT estimates its allowance for bad debts based on a historically supported factor of 7% of accounts

IBT CO uses the allowance method for bad debts.IBT estimates its allowance for bad debts based on a historically supported factor of 7% of accounts receivable.IBT's 2019 credit sales were $10,500,000.IBT's AR balance as of 12/31 is $5,650,000 The balance in IBT's Allowance for Bad Debts account as of 12/31/18 was $(246,000). Prepare the adjusting entry required to adjust IBT's Allowance for Bad Debts as of 12/31/19:

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