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Hahn Company Uses the Percentage of Sales Method for Recording

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Hahn Company uses the percentage of sales method for recording bad debt expense. For the year, cash sales are $300,000 and credit sales are $1,500,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Hahn Company make to record the bad debt expense? Hahn Company uses the percentage of sales method for recording bad debt expense. For the year, cash sales are $300,000 and credit sales are $1,500,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Hahn Company make to record the bad debt expense?

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