At each calendar year-end, Rivka Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2009, it has outstanding accounts receivable of $139,500, and it estimates that 2% will be uncollectible.
Required:
Prepare the adjusting entry to record bad debts expense for year 2009 under the assumption that the Allowance for Doubtful Accounts has (Omit the "tiny_mce_markerquot; sign in your response):