Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables, the adjusting entry of December 31st had been based on on an estimated expense of 1/4 of 1% of the net sales of $7,126,000 for the year.

I have figured the Bad Debt expense to be $17815??

I need to figure the Allowance account.. I know I should be subtracting two items for this and believe one of them is the bad debt expense of $17815, but that is as far as I can get. HELP!

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I have figured the Bad Debt expense to be $17815??

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This is correct.

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I need to figure the Allowance account.. I know I should be subtracting two items for this and believe one of them is the bad debt expense of $17815, but that is as far as I can get. HELP!

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You're mixing this up with the other method, and it's not always a subtraction even in that method. In the analysis of receivables method, the number of the estimated uncollectibles is the ending balance you want to have in the Allowance account, so you have to figure out what entry into the account would create that ending balance.

But in the % of sales method, that answer you got (17815) is not an ending balance. It's the actual number for the entry itself. That is, this is what you are going to credit to the Allowance account. If all you need is the entry, you're done with the math. If you need to then balance the account, credit this to whatever's already there and just balance like you'd balance any other account.