Allowance for Doubtful Accounts Has a Debit Balance of $1,200

Allowance for Doubtful Accounts has a debit balance of $1,200 at the end of the year (before adjustment) . The company prepares an analysis of customers' accounts and estimates the amount of uncollectible accounts to be $13,900. Which of the following adjusting entries is needed to record the Bad Debt Expense for the year?

A) debit Bad Debt Expense, $15,100; credit Allowance for doubtful Accounts, $15,100
B) debit Allowance for Doubtful Accounts, $15,100; credit Bad Debt Expense, $15,100
C) debit Allowance for Doubtful Accounts, $12,700; credit Bad Debt Expense, $12,700
D) debit Bad Debt Expense, $12,700; credit Allowance for Doubtful Accounts, $12,700

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free