Bramble Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $598000 and credit sales are $2620000. Management estimates that 5% is the sales percentage to use. What adjusting entry will Bramble Company make to record the bad debts expense?

Bad debt expense Dr ($2,620,000 × 5%)  $131,000

       To Allowance for doubtful debts $131,000

(Being bad debt expense is recorded)

Explanation:

The adjusting journal entry is shown below:

Bad debt expense Dr ($2,620,000 × 5%)  $131,000

       To Allowance for doubtful debts $131,000

(Being bad debt expense is recorded)

Here bad debt expense is debited as it increased the expense  and credited the allowance for doubtful debt as it decreased the assets

Also assets and expenses has normal debit balance

if i need to borrow money for anything, it would be for something like a house or an apartment but, that depend on the situation.

is this good enough?