Prepare the Adjusting Journal Entry to Record the Estimate for Bad

Essay

Prepare the adjusting journal entry to record the estimate for bad debts assuming:
On December 31 of the current year,a company's unadjusted trial balance revealed the following: accounts receivable of $185,600; sales revenue of $1,280,000; (75% were on credit); and allowance for doubtful accounts of $1,600 (credit balance).
a.Bad debts expense is estimated to be 1.5% of credit sales.
b.6% of the accounts receivable balance is assumed to be uncollectible.