An Aging of a Company's Accounts Receivable Indicates That Estimate

question 7

Multiple Choice

An aging of a company's accounts receivable indicates that estimate of the uncollectible accounts totals $4,000. If Allowance for Doubtful Accounts has a $800 credit balance, the adjustment to record the bad debt expense for the period will require a

• A) debit to Allowance for Doubtful Accounts for $3,200.
• B) debit to Bad Debt Expense for $3,200.
• C) debit to Allowance for Doubtful Accounts for $4,000.
• D) credit to Allowance for Doubtful Accounts for $4,000.

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