The Allowance for Doubtful Debts Has a Credit Balance of $8000

question 84

Multiple Choice

The Allowance for doubtful debts has a credit balance of $8000 before the adjusting entry for bad debt expense.After analysing the accounts in the accounts receivable subsidiary ledger using the ageing method,the company's management estimates that uncollectable accounts will be $15,000.What will be the amount of bad debts expense reported on the income statement?

• A)$23,000
• B)$8000
• C)$15,000
• D)$7000

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