At the end of the current year, A claim against the customer created by selling merchandise or services on credit.Accounts Receivable has a balance of $3,460,000; The contra asset account for accounts receivable. Allowance for Doubtful Accounts has a debit balance of $12,500; and sales for the year total $46,300,000. The operating expense incurred because of the failure to collect receivables. Bad Debt Expense is estimated at ½ of 1% of sales.