Sigma reports net credit sales of $400,000.There is a credit balance of $1,000 in the Allowance for Doubtful Accounts.Uncollectible accounts are estimated to be 2.5% of net credit sales.Under the income statement approach,the adjusting entry would require a debit to Bad Debt Expense for:

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The adjusting entry would require a debit to Bad Debt Expense for $10,000, which is calculated as 2.5% of net credit sales of $400,000.

Sigma Reports Net Credit Sales of $400,000