Question: Kleen Kompany uses the percentage of sales method for recording bad debts expense. The accounts receivable balance is $302423 and credit sales are $910564.

Kleen Kompany uses the percentage of sales method for recording bad debts

Kleen Kompany uses the percentage of sales method for recording bad debts expense. The accounts receivable balance is $302423 and credit sales are $910564. An analysis of credit sales shows that 3% will be uncollectible. What adjusting entry will Kleen Kompany make if the Allowance for Bad Debts has an unadjusted debit balance of $2343?

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