?

Based on the industry average, Davis Corporation estimates that its bad debts should
average 3% of credit sales. The balance in the allowance for uncollectible accounts at the
beginning of Year 3 was $140,000. During Year 3, credit sales totaled $10,000,000,
accounts of $100,000 were deemed to be uncollectible, and payment was received on a
$20,000 account that had previously been written off as uncollectible. The entry to record
bad debt expense at the end of Year 3 would include a credit to the allowance for
uncollectible accounts of