An aging of a company's accounts receivable indicates that $9,000 are estimated to be uncollectible.If Allowance for Doubtful Accounts has a $3,200 credit balance, the adjustment to record bad debts for the period will require a
A)debit to Bad Debt Expense for $9,000.
B)debit to Allowance for Doubtful Accounts for $5,800.
C)debit to Bad Debt Expense for $5,800.
D)credit to Allowance for Doubtful Accounts for $9,000.

Question

Quizplus · Accepted Answer

The adjustment needed is the difference between the estimated uncollectible amount ($9,000) and the existing credit balance in the Allowance for Doubtful Accounts ($3,200), which is $5,800. Therefore, a debit to Bad Debt Expense for $5,800 is required.

An Aging of a Company's Accounts Receivable Indicates That $9,000