The Allowance for Bad Debts Account Has a Credit Balance

The Allowance for Bad Debts account has a credit balance of $8,300 before the adjusting entry for bad debts expense.After analyzing the accounts in the accounts receivable subsidiary ledger using the aging-of-receivables method,the company's management estimates that uncollectible accounts will be $14,700.What will be the balance of the Allowance for Bad Debts reported on the balance sheet?

A) $14,700
B) $6,400
C) $23,000
D) $13,230

Correct Answer:

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