On December 31,2016,prior to adjustments,the Allowance for Doubtful Accounts has a debit balance of $750.An aging of the accounts receivable produces an estimate of $6,500 of probable losses from uncollectible accounts.The adjusting entry needed to record the estimated losses from uncollectible accounts includes a:
A) a credit to Allowance for Doubtful Accounts for $6,500
B) a debit to Uncollectible Accounts Expense for $5,750
C) a credit to Allowance for Doubtful Accounts for $7,250
D) a debit to Uncollectible Accounts Expense for $6,500

Question

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The Allowance for Doubtful Accounts needs to have a credit balance of $6,500 after adjustment. Since it currently has a debit balance of $750, the adjusting entry must credit the allowance account by $7,250 to offset the debit and achieve the desired credit balance.

On December 31,2016,prior to Adjustments,the Allowance for Doubtful Accounts Has