How would you journalize entries to record allowance for doubtful accounts

debit credit

accounts recv. 520,000

all for uncollect. Accts 300

sales 1,460,000


management determines that they need an allowance equal to 3% of accounts recievable, prepare necessary year end adjusting entry.


my answer is

bad debt expense 43,500
allowance for uncollect. 43,500 - how I got my answer (1,460,000 x 3% =43,800-300=43,500
)

Journalize entry

[Dr.] Bad debt expense 15,300
[Cr.] Allowance for uncoll. Acc. 15,300

Explaination:

management determines that they need an allowance equal to 3% of accounts recievable, this method is termed as 'balance sheet approach'

Allowance for uncoll. Acc.
= 520,000 * 0.03
= 15600

Allow. For uncoll. Acc. - Cl.bal 15,600
Allow. For uncoll. Acc. - Op.bal (300)
Allow. Made during the year 15,300