Kingbird, Inc. uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $390000 and credit sales are $1560000. Management estimates that 5% of accounts receivable will be uncollectible. What adjusting entry will Kingbird, Inc. make if the Allowance for Doubtful Accounts has a credit balance of $3900 before adjustment?
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Home » Business » Kingbird, Inc. uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $390000 and credit sales are $1560000. Management estimates that 5% of accounts receivable will be uncollectible.