Gordie Co Reported an Allowance for Bad Debts of $20,000 (Credit)

question 33

Multiple Choice

Gordie Co. reported an Allowance for Bad Debts of $20,000 (credit) at December 31, before performing an aging of accounts receivable. As a result of the aging, Gordie determined that an estimated $28,000 of the December 31, accounts receivable would prove uncollectible. The adjusting entry required at December 31, would be

• A)
• \(\begin{array} { l l }
• \text { Bad Debt Expense } & 28,000 \\
• \text { Allowance for Bad Debts } & 28,000
• \end{array}\)
• B)
• \(\begin{array}{lr}
• \text { Bad Debt Expense } & 20,000 \\
• \text { Accounts Receivable } & 20,000
• \end{array}\)
• C)
• Allowance for Bad Debts \( \quad 8,000 \)
• Bad Debt Expense \( \quad 8,000 \)
• D)
• \(\begin{array} { l r }
• \text { Bad Debt Expense } & 8,000 \\
• \text { Allowance for Bad Debts } & 8,000
• \end{array}\)

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