You have the following information from the unadjusted trial balance:

(A) sales for the year were $1.25 million

(B) the balance of accounts receivable at the end of the year was $120,000

(C) the allowance account before any adjusting entries had a credit balance of $1,000

(D) the balance in the bad debt expense account is zero

Bad debt expense is estimated at 0.5% of total sales. The journal entry to book bad debt expense would be a debit to bad debt expense of Select an answer $5,250 $6,000 $6,250 $62,500 and a corresponding credit to Select an answer Allowance for Doubtful Accounts Accounts Receivable Service Revenue Bad Debt Expense .

Box 1: Select the best answer

Box 2: Select the best answer