Kinsler Company Uses the Percentage-Of-Receivables Method for Recording Bad Debt

Short Answer

Kinsler Company uses the percentage-of-receivables method for recording bad debt expense.The Accounts Receivable balance is $250,000 and credit sales are $1,000,000.Management estimates that 6% of accounts receivable will be uncollectible.What adjusting entry will Kinsler Company make if the Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment