Windsor, Inc. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $160000 and credit sales are $1610000. Management estimates that 4% of accounts receivable will be uncollectible. What adjusting entry will Windsor, Inc. make if the Allowance for Doubtful Accounts has a credit balance of $1600 before adjustment?

Bad Debt Expense		6400
	Accounts Receivable		6400

Bad Debt Expense		6400
	Allowance for Doubtful Accounts		6400

Bad Debt Expense		4800
	Allowance for Doubtful Accounts		4800

Bad Debt Expense		4800
	Accounts Receivable		4800

Answer rating: 100% (QA)

A 1 Accounts title and explanation Debi... View the full answer