Answer:
Debit Bad debt expenses with $1,755; and credit Allowance for doubtful accounts also with $1,755.
Step-by-step explanation:
Bad debt expenses = Receivables × Uncollectable percentage = $117,000 × 1.5% = $1,755
The adjusting entries will be as follows:
Details Dr ($) Cr ($)
Bad debt expenses 1,755
aAllowance for doubtful accounts 1,755
To record the estimated uncollectable amount.