At the end of a period (before adjustment), Allowance for Doubtful Accounts has a credit balance of $5,000. The Accounts Receivable balance is analyzed by aging the accounts and the amount estimated to be uncollectible is $50,000. The amount to be recorded in the adjusting entry for the Bad Debt Expense is $45,000.

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Since Allowance for Doubtful Accounts has a credit balance of $5,000 before adjustment, and the estimated uncollectible amount is $50,000, an adjusting entry to increase the allowance balance by $45,000 (to a total of $50,000) is necessary. This entry will be a debit to Bad Debt Expense for $45,000 and a credit to Allowance for Doubtful Accounts for $45,000.

At the End of a Period (Before Adjustment), Allowance for Doubtful