Question - Gonzalez Company has been in business for several years. At the end of the current year, the ledger shows:
Accounts Receivable$ 310,000 Dr. Sales Revenue2,200,000 Cr. Allowance for Doubtful Accounts6,100 Cr.
Bad debts are estimated to be 5% of accounts receivables. Prepare the entry to adjust Allowance for Doubtful Accounts.