The Allowance for Bad Debts Account Has a Debit Balance

question 223

Multiple Choice

The Allowance for Bad Debts account has a debit balance of $8,000 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary ledger, the company's management estimates that uncollectible accounts will be $12,000. What will be the amount of the adjustment in the Allowance for Bad Debts account?

• A) $19,250
• B) $12,000
• C) $18,900
• D) $20,000

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