The Allowance for Bad Debts account has a debit balance of $9000 before the adjusting entry for bad debts expense.After analyzing the accounts in the accounts receivable subsidiary ledger,the company's management estimates that uncollectible accounts will be $11,000.What will be the amount of the adjustment in the Allowance for Bad Debts account?
A) $19,250
B) $11,000
C) $18,900
D) $20,000

Question

Quizplus · Accepted Answer

Beginning balance of the Allowance for Bad Debts (Credit) + Estimate for uncollectible accounts = $9000 + $11,000 = $20,000

The Allowance for Bad Debts Account Has a Debit Balance