Allowance for Doubtful Accounts Has a Credit Balance of $2,100

question 128

Multiple Choice

Allowance for Doubtful Accounts has a credit balance of $2,100 at the end of the year (before adjustment) , and an analysis of customers' accounts indicates uncollectible receivables of $19,700. Which of the following entries records the proper adjustment for bad debt expense?

• A) debit Allowance for Doubtful Accounts, $17,600; credit Bad Debt Expense, $17,600
• B) debit Allowance for Doubtful Accounts, $21,800; credit Bad Debt Expense, $21,800
• C) debit Bad Debt Expense, $21,800; credit Allowance for Doubtful Accounts, $21,800
• D) debit Bad Debt Expense, $17,600; credit Allowance for Doubtful Accounts, $17,600

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