An Aging of a Company's Accounts Receivable Indicates That $5,000

question 59

Multiple Choice

An aging of a company's accounts receivable indicates that $5,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a

• A) debit to Bad Debt Expense for $5,000.
• B) debit to Allowance for Doubtful Accounts for $3,800.
• C) debit to Bad Debt Expense for $3,800.
• D) credit to Allowance for Doubtful Accounts for $5,000.