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

question 131

Multiple Choice

The Allowance for Bad Debts has a credit balance of $8000 before the adjusting entry for bad debts expense.After analyzing the accounts in the accounts receivable subsidiary ledger using the aging-of- receivables method,the company's management estimates that uncollectible accounts will be $15,000.What will be the amount of Bad Debts Expense reported on the income statement?

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

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