The amount of the bad debt adjusting entry after Sandhill estimates that 1.5% of its receivables will be uncollectible will be $3,136.
Total allowance required = Account receivables * 1.5%
Total allowance required = $176,000 * 1.5%
Total allowance required = $2,640
Now, from the question, the allowance for doubtful accounts have a debit balance of $496, so, an adjustment should be made by adding the Allowance required to the debit balance of the allowance account.
Adjusted amount = $2,640 + $496
Adjusted amount = $3,136
Therefore, the amount of the bad debt adjusting entry after Sandhill estimates that 1.5% of its receivables will be uncollectible will be $3,136.
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