Problem #5: Adjusting entry for Bad Debts The following information is available from the adjusted trial balance as of 12/31/2020 Accounts Receivable $1,000,000 Sales $10,000,000 Allowance for Doubtful Accounts $8,000 credit balance Bad debts are estimated to be 4% of receivables. Make the adjusting entry for bad debts. Date Account Debit Credit The following information is available from the adjusted trial balance as of 12/31/2020 Accounts Receivable $200,000 Sales $1,000,000 Allowance for Doubtful Accounts $800 debit balance Bad debts are estimated to be 5% of receivables. Make the adjusting entry for bad debts. Date Account Debit Credit