You Have Just Analyzed Customers' Accounts Receivable Through an "Aging $\begin{array}{ll}\text { Bad Debt Expense } & 3,100 \\\text { Allowance for Bad Debts } & 3,100\end{array}$

question 65

Multiple Choice

You have just analyzed customers' accounts receivable through an "aging" process and have determined that $3,000 of the accounts receivable are probably uncollectible. Noting that your trial balance shows an Allowance for Bad Debts with a debit balance of $100, what is the correct adjusting entry?

• A)
• \(\begin{array}{ll}
• \text { Bad Debt Expense } & 3,100 \\
• \text { Allowance for Bad Debts } & 3,100
• \end{array}\)
• B)
• \(\begin{array}{cc}
• \text { Allowance for Bad Debts } & 3,100 \\
• \text { Bad Debt Expense } & 3,100
• \end{array}\)
• C)
• \(\begin{array}{cc}
• \text { Allowance for Bad Debts } & 3,000 \\
• \text { Bad Debt Expense } & 3,000
• \end{array}\)
• D)
• \(\begin{array}{ll}
• \text { Bad Debt Expense } & 2,900 \\
• \text { Allowance for Bad Debts } & 2,900
• \end{array}\)

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