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Larkspur Company uses the percentage of receivables method for recording bad debts expense. The accounts...

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Accounting

Larkspur Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $330000 and credit sales are $3310000. Management estimates that 4% of accounts receivable will be uncollectible. What adjusting entry will Larkspur Company make if the Allowance for Doubtful Accounts has a credit balance of $3300 before adjustment?
Bad Debt Expense
9900
Accounts Receivable
9900
Bad Debt Expense
9900
Allowance for Doubtful Accounts
9900
Bad Debt Expense
13200
Accounts Receivable
13200
Bad Debt Expense
13200
Allowance for Doubtful Accounts
13200
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