What amount should be debited to bad debts expense when the


A company used the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts:

accounts receivable 245,00 debit
allowance for uncollectible accounts 300 credit
net sales 900,000 credit

All sales are made on credit. Based on past experience, the company estimates 0.5% of credit sales to be uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?

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Accounting Basics: What amount should be debited to bad debts expense when the
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