An aging of a company's accounts receivable indicates that $13,000 is estimated to be uncollectible.If the Allowance for Doubtful Accounts has a $2,400 debit balance, the adjustment to record bad debts for the period will require a
A)debit to Bad Debts Expense for $15,400.
B)debit to Bad Debts Expense for $13,000.
C)debit to Bad Debts Expense for $10,600.
D)debit to Allowance for Doubtful Accounts for $13,000.

Question

Quizplus · Accepted Answer

The adjustment needed is to bring the Allowance for Doubtful Accounts to the estimated uncollectible amount of $13,000. Since there is already a $2,400 debit balance, you need to add $15,400 to reach the desired credit balance of $13,000.

An Aging of a Company's Accounts Receivable Indicates That $13,000