The Allowance for Bad Debts Account Has a Credit Balance

question 61

Multiple Choice

The Allowance for Bad Debts account has a credit balance of $9,000 before the adjusting entry for bad debt expense. After analyzing the accounts in the accounts receivable subsidiary ledger using the aging method, the company's management estimates that uncollectible accounts will be $15,000. What will be the balance of the Allowance for Bad Debts reported on the balance sheet?

• A)$15,000
• B)$14,900
• C)$15,900
• D)$14,100

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